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The EURUSD tumbled lower with the rise in the USD today.
Technically, the price fell below the 200 and then 100 hour MAs. A swing area between 1.0505 to 1.05095 was broken, but another swing low from Monday and Tuesday at 1.04904 was able to stall the fall. See the earlier post defining that low target.
The subsequent bounce off the low reached 1.05277. That rebound was still short of the 100 hour moving average at 1.05396. It would take a move above the 100 hour moving average to hurt the bearish bias.
As a review, the high price reached today stalled ahead of the 38.2% retracement of the move down from the April 21 high. That retracement level came in at 1.0648. The high price reached 1.0641 before rotating back to the downside. The inability to get back above the 38.2% retracement helps to define a “plain-vanilla” correction in what has been a bearish market.
Nevertheless, if the price can rebound back above the 100/200 moving averages, it would give the buyers hope that the bottom developed over the last 5 days between 1.0470 and 1.0490, is solid. Until then however the sellers are still winning and the buyers are not.