The EURUSD – at the start of the trading day – was near session highs and in the process was looking to test a key topside resistance area. That resistance came in at the broken 38.2% retracement at 1.06106, and swing lows up to 1.0616. In the morning kickstart video, I spoke to that key resistance. In my written comments from that post I said:
For the EURUSD, it moved to a new low going back to March in trading today and extended to a low price of 1.05692 before rebounding back higher. The high price has so far reached up to 1.0608 which is just short of the broken 38.2% retracement of the move up from the September 2022 low. That level comes in at 1.06106. The low prices from last week’s trading came in at 1.0610 and 1.0616. That area up to 1.0616 is now resistance. Staying below keeps the sellers more in control and a rotation toward the lows could be forthcoming. Moving above, and we could see a rotation back toward the falling 100-hour moving average of 1.06399.
The price did stay below the key resistance and the price has indeed rotated lower. The price is currently testing the earlier lows for the day.
What next?
Move to new lows, and traders will start to focus on the swing area on the daily chart between 1.0484 and 1.0533. Between that comes a natural support at 1.0500.
Looking at the daily chart below, the yellow area/red numbered circles are the next key target area.
This article was written by Greg Michalowski at www.forexlive.com. Source