Earlier today, the buyers in the EURUSD took the price outside the Red Box, that has informed the pair over the last 11 trading days. There has been support down at 1.07609, and resistance 1.08725. The break higher today took the price up to 1.08874 before rotating back to the downside. After moving back into the Red Box, buyers have turned back to sellers and have pushed the price back toward the closing levels from yesterday’s trade 1.08559. The low price just reached 1.08509.
So buyers had their shot on the break higher. They missed.
Unmarked selling, the low for the day at 1.08427 is the next target. Below that and traders will look toward the 100-hour moving average 1.08229 and the 200-hour moving average 1.08149. The 1.08103 level is a another target to eye on the downside.
On the topside, it would take a move back above the 200-day moving average at 1.08687 and the high of a swing area 1.08725 to frustrate both buyers and sellers.
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EURUSD Technical Analysis
Key Points:
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EURUSD broke out of its 11-day trading range (Red Box) but failed to sustain momentum.
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Price reached 1.08874 before reversing and falling to 1.08509.
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Buyers’ attempt to break higher failed.
Downside Targets:
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1.08427 (today’s low)
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1.08229 (100-hour moving average)
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1.08149 (200-hour moving average)
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1.08103 (key support)
Upside Resistance:
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1.08687 (200-day moving average)
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1.08725 (swing area high)
A move above 1.08725 or below 1.08427 could provide directional clarity.
This article was written by Greg Michalowski at www.forexlive.com. Source