The EURUSD is breaking to a new low and is now below the 200-hour moving average 1.11544. As outlined in the morning video (click on the video link below), the price has not traded below that level since July 7. Earlier today, the price fell back below the 1.1184 – 1.11945 area. Stay below that level would keep the sellers more control and that is what happened.
The 200-hour moving averages should have given traders some cause for pause at least on the 1st look. Breaking below with ease has the sellers more in control. There is modest support near 1.11285. Below that the 38.2% retracement of the move up from the July 6 low comes in at 1.1106 and would need to be broken IF the sellers are to take back more control.
Close risk is the 200-hour moving average (at least in the short term). Sellers are making a play on the break. Can they keep the momentum going?
This article was written by Greg Michalowski at www.forexlive.com. Source