The EURUSD has moved to a new session low as a retraces gains from yesterday's trading. The pair is currently trading at 0.9869. The takes the price between a swing area between 0.9864 and 0.9877. More selling pressure would have traders looking toward the broken 38.2% retracement of the move down from the August high which cuts across at 0.98533 followed by the rising 100 hour moving average at 0.98417. The price move back above the 100 hour moving average back on September 28 and after a retest on September 29 (a small break on September 29 failed), and started the run to the upside for this currency pair.
Taking a look at the daily chart, yesterday the price moved above the 50% retracement of the move down from the August high. That level came in at 0.99515. That level also corresponds with the swing low going back to July 14, 2022. Back in July, that level based the pair and ultimately led to a a corrective move over the next month into August that took the price back to 1.03678. From that high, the price reversed lower with the pair ultimately bottoming at last week's trading low of 0.9535.
I consider the 50% and the July low at 0.99515 as a barometer for buyers and sellers. Today when the price move back below that level, traders usedthat level as resistance before rotating back to the downside into the London morning session and in early US session (see hourly chart above).
The last 4 at of 5 trading days has seen the EURUSD bounce up to a high yesterday just short of the parity level 1.0000. The high price reached 0.9999 before rotating back to the downside. If the sellers are to take more control, they would need to get below the 0.9864, and then the 100 hour moving average at 0.98417.
