Trades to the lowest level since December 11
The EURUSD has moved to a new session and week low, and in the process, trades lowest level since December 11. The price is also pushing toward the next target at the December 11 low AND lower trend line of 1.21023 (see red numbered circles). A move below that level – and another swing low at 1.20948 – would open the door to more downside momentum.
Looking at the hourly chart, the fall today took the price back below swing lows from December 14, December 15 and December 16 between 1.2115 and 1.2124. It would take a move back above those levels now to give buyers some hope that the momentum to the downside today, may have gone too far (see yellow area in the chart above).
For the week, the Price action was up and down. The high for the week, came in on Wednesday. At the time, the pair moved above the 100 hour moving average, but could not sustain momentum. Yesterday, the price also moved above the 100 hour moving average, only to fall back after the modest break. Buyers had their shots, but could not muster much support from the “market”.