EURUSD tumbles to key support target. Will buyers lean against the key swing area?

A technical update for the EURUSD:

The EURUSD has continued its move to the downside as dollar buying dominates early US trading. The price has moved down to a key swing area. Looking at the 4-hour chart below, the area between 1.0833 and 1.08485 is home to a number of swing lows and highs going back to mid-May (see red numbered circles on the chart below).

Last week, the price bottomed in this area and rebounded back higher in early trading this week. In trading today, the high price reached up to test its key 100-day moving average at 1.0930, and found willing sellers. That level was also near the 38.2% retracement of the last trend move down from the high two weeks ago.

Holding against those technical levels gave the sellers the go-ahead to push lower, and over the last 3 bars, the price has stepped steadily to the downside. Now the question is will the dip buyers lean against the key swing area? Risk is defined and limited with a stop below 1.0833.

This article was written by Greg Michalowski at Source