The EURUSD moved below a swing area between 1.08788 and 1.0894. The 61.8% of the move up from the December low is also in that area and all of it now sets that area a risk and bias defining area. Stay below 1.0894 is more bearish in the short term at least. Move above and the sellers may look to turn to buyers.
On the downside, the next target comes against its 200-day imoving average of 1.0846. At that key MA, traders will have another decision – buy against the level for a bounce, or hope for a break and further downside momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source