The EURUSD has moved to new session lows and in the process has moved into the lower extreme of the consolidation. That confined the pair from July 18 to August 10. After 2 days above the higher extreme (up to 1.02934), the price has been stepping lower.
Technically, the pair traded in a up down and up fashion into the late London morning session. The last high, found willing sellers just ahead of its falling 100 hour moving average currently at 1.01865. The early hours in the North American session has seen continued downside erosion with the pair falling below a swing area between 1.0144 and 1.01509. The price more recently dipped below the swing low for the week at 1.0121. The low price for the day stalled at the 61.8% retracement of the move up from the July 14 low at 1.01105.
A move lower would have traders looking to break out of the lower extreme at 1.0096. I would expect more selling to occur below that level with the next target near 1.0070- 1.0074.
For traders looking for lower levels, a move back above 1.0144 – 1.01509 would soften the bearish bias a bit (close risk). A stronger stop would be the falling 100 hour moving average 1.01865 now. For the dip buyers getting above these levels would give comfort that once again the lower extremes held support.
