The EURUSD is on a "fast break the other way" after the turnover near the 50% retracement. As outlined in the previous video, the EURSD had moved above a swing area between 1.0219 and 1.0234 on the 50 basis point hike, and moved up to test the highs from Tuesday and Wednesday. The price moved briefly above those levels, but could not get above the 50% retracement target 1.02829.
The price subsequently moved back below the 1.02198 - 1.0234 area. Buyers were disappointed and push the price back down.
The price has now broken below the 100 hour moving average on the downside. UGH.
The price action highlights the importance of technical levels. The upside technical target at the 50% retracement is not a mystery. If the buyers are to take control, they need to get and stay above that level. That did not happen.
The break of the key swing area down to 1.02198 was also a key support level that needed to hold on a correction off the 50%. That level did not hold. Buyers turned to sellers and the markets are in flux.
The downside the 1.0134 to 1.01433 is now a support target. Below that and traders would target the 1.0118 level.
Can the price rebound back to the upside?
On the get these sharp moves up and down anything can happen. Lagarde is still talking. Stock trading is now underway with mixed to lower levels. What is true however is buyers had the shot and they missed.
