The EURUSD slid below its 200 hour moving average at the start of the North American session, then corrected up to retest that moving average only to find willing sellers (see post here).
The inability to move back above the 200 hour moving average kept the sellers in firm control. And the price has indeed rotated back to the downside fallen below a swing area between 1.1359 and 1.1368, and now test a lower swing area between 1.13418 and 1.1347. The low price just reached 1.13405. Sellers remain in firm control.
On the downside, there is a lot of support as the price enters the old swing consolidation area. A swing low from January 11 cuts across at 1.13126. That would be the next major target on the downside. Below that and traders look toward 1.1285 area.
On the topside, the close risk level now comes in at 1.1368 (high of the upper swing area today). Moving back above that level would disappoint sellers with the 200 hour moving average and obvious other key risk defining level for shorts looking for further downside.
Recall from last week, the price moved above the 1.13857 level - breaking outside of a range that way back to November (see post from last week HERE).
Earlier today, the price came down to retest that level, found support buyers, but then cracked below the level and the rising 200 hour moving average at the same time. That pushed price back within the up and down swing area going back to November.
The move back into the consolidation area is a disappointment for the break-out buyers from last week. We are seeing that reaction play out in trading today with increased downside momentum.
