The EURUSD has reached a new session low in early US trading and in the process has tested the swing area between 1.12252 and 1.12283. The low just reached 1.12266. The current price is trading at 1.1239.
That swing area was a floor going back to November 22 and November 23. On November 24, the price move below that level and the area became a ceiling on November 25 and November 26 before breaking higher (also on the 26th).
Last week, the extreme low on November 30 reached 1.1233 – just above that swing area - and found early buyers against the level on the sharp move to the downside.
What now?
Needless to say that old floor/ceiling will need to be broken if the pair is going to take another run at the 2021 low at 1.11853. Failure to do that and traders will be looking for clues on the old swing levels above. Watch the 1.12488 swing low from November 19, the 1.12574 swing low from November 29, and the recent swing lows from Friday and Monday at 1.12658. Earlier today, the price moved above and below those levels before deciding on the downside (see green numbered circle three
