Risk off flows and technicals lead the way lower
The EURUSD has reversed the gains from yesterday. The fall in US stocks helped to push funds into the USD. Technically, some key breaks have also contributed to the decline.
Looking at the hourly chart, the pair in the Asian session held support against the 100 hour moving average at 1.2154 (blue line), but could not extend above a topside trend line (see green numbered circles). The fall below the 100 hour moving average started the selling. That momentum it continued after the break of the 200 hour moving average at 1.21297. Sellers leaned against that level and the prices now moved down to test the 61.8% retracement 1.21049. The low price for the day has reached 1.21036.
It will take a move below the 6120% retracement to increase the bearish bias. On the topside, close risk might be at the 50% midpoint of the range since January 18. That level comes in at 1.21209. More conservative risk that sellers would like to see the price stay below would be the 200 hour moving average 1.21297.