The EURUSD corrected higher off a swing area between 1.0842 and 1.08485. The corrected move higher in the early New York session moved back into the lower swing area of a “Red Box” that confined the pair in April and May (between 1.08955 to 1.1095), and which was broken last week. The price moved back outside that “Red Box” today (below the lower extreme area).
The corrective move today saw the price extend to 1.0901 and although the price moved above the low of the “Red Box”, the lower swing area (see red number circles on the chart above) up to 1.09081 was not broken. Sellers have pushed the price back to the downside.
What next?
The 1.0895 up to 1.0908 remains an area to stay below to keep the sellers in control. On the downside, getting back below the 38.2% retracement of the move up from the May low at 1.0867’s next target followed by the lows today, and lower swing area between 1.0842 and 1.0848 are targets that would increase the sellers bias.
Below that area are a number of moving averages and the 50% midpoint of the same move higher. That area comes between 1.0809 and 1.08229.
The buyers had a shot this week with most of the price action within the “Red Box” (from April/May). That failed today with the sharp move lower. Sellers are back more in control.
This article was written by Greg Michalowski at www.forexlive.com. Source