The EURUSD is making new year lows – falling below the 1.2499 low from earlier this month. On the move lower, the price fell back below the 1.2571-84 area in Asian/London trading, but briefly moved above on the as expected CPI (at least it was not lower). That move was brief and the pair has since continued the downward momentum (see chart below).
Looking at the 5 minute chart, the high correction that took the price back above the 1.2584 level did run into the 200 bar MA. The holding of that level was good news for the sellers shorts.
Since that high the price has trended lower. The 38.2%-50% of that last leg down comes in at the 1.2525 to 1.2538 level. Stay below this correction zone area and the sellers remain in control. Remember as well that the low from yesterday came in at 1.25468. This too is a level that should not be breached.
The price is getting a snap back move after stops were triggered below the 1.2500 level. This give cause for pause but look for corrections to find sellers again against the aforementioned resistance at the 1.2525-38 area. If it is able to hold, there could be more scope for the move to continue (need to get and stay below the 1.25000 level). If it moves above, the waters get more muddy for the pair as the weekend approaches.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.