The EURUSD just moved to a new session low in the current hourly bar, and in the process the price of the EURUSD took a peek below its 200 hour moving average at 1.04903. The low price reached 1.04882.
The sellers had their shot, but momentum could not be sustained. The price has already pushed back above the 1.0500 level and trades at 1.0509 in what has been up and down volatile trading in the New York session.
Earlier, in the New York session, the EURUSD price spiked higher and back above the 61.8% retracement of the May trading range at 1.05293. However, momentum could not be sustained on that move, and the last few hours has seen a rotation back to the downside (and to the 200 hour moving average).
So buyers had there shot above 1.05293 and sellers had their shot below 1.04903. Each failed. Nevertheless, the battle zone remains at those levels as buyer and sellers battle it out.
What happens on a break higher or lower?
A move back above the 61.8% retracement at 1.05293 should give the buyers more confidence, with traders retargeting the 1.0567 to 1.0576 swing area on the topside (see red numbered circles).
Conversely, a move back below the 200 hour moving average, and the dip buyers seen today, should give up and look toward the 1.04709 (low of the red box) as the next key target, followed by the 100 hour moving average (blue line in the chart above) at 1.04459.