In the earlier video (see below), on the EURUSD I spoke to the 200-hour MA above and the 38.2% below. The price needed to get above the 200-hour MA or below the 38.2% retracement below. You can watch the video below.
The high for the US session stayed below the 200-hour MA keeping the sellers in play (see green line on the chart below). The price did indeed move lower and back below the 100-hour MA (blue line). The price continued lower and moved back to 38.2% at 1.0867, had some stall, and more recently has extended to a new low and in the process, below the retracement level. Bearish.
The next target area comes in at the swing area between 1.08424 and 1.08485. Move below that level, and traders will start to target the key 100-day moving average and 50% midpoint retracement of the move up from the May 31 low. Both those key levels come in near 1.0823. I would expect that area would be a tough nut to crack on the first look.
Sellers are making a play. Hope is that momentum continues and the pair tests the 100-day moving average and 50% retracement is also in play as a key downside target.
If this break fails, we cannot rule out a run back the 200-hour MA. However, sellers are making a play. Sellers are in control. The buyers are under technical pressure.
This article was written by Greg Michalowski at www.forexlive.com. Source