The EURUSD tests the end of March high and backs off

Technical Analysis

Author: Greg Michalowski | eurusd

The March 27 high reached 1.1146. The high today reached 1.11447

The EURUSD has successfully tested the end of March high at 1.11465. The high price so far as reach 1.11447 and backed off (just a pip or two from matching the high). The current price trades around 1.1116.

The March 27 high reached 1.1146. The high today reached 1.11447 
For the week, the low was reached on Monday. On that day, the price was lower on the day, but since that time, the price has risen for the last 4 trading sessions. The low for the week reached 1.08698. The high today has so far extended to 1.11447. 

If the price momentum should continued to the topside , a break of the end of March high have traders targeting the 61.8% retracement of the years trading range at 1.11644 (but prices are now weakening).

Drilling down to the 5 minutes chart, the price is testing/breaking below its 100 bar moving average currently at 1.11167 area. That is also the 50% retracement of the last leg higher. The break is now seeing more downside momentum.  Note also that in the London morning session, the price based against that 100 bar moving average and moved higher. So there is a little more bearishness creeping into the price action on the move below the 100 bar moving average currently.   

Traders will now be looking looking toward the 200 bar moving average at 1.10984 (and rising – call it 1.1100). A move below opens the door for further downside momentum with 1.1088 and the close from yesterday at 1.1075 as targets.

EURUSD on the 5 minute chart

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