EURUSD breaks trend line support and stumbles lower

Technical Analysis

Author: Greg Michalowski | eurusd

Something had to give....

As London traders look to exit for the day, the EURUSD broke below the lower trend line on the hourly chart and has stumbled lower. The low in the first hour of trading at 1.07316 has yet to be breached. So the range for the day remains at a narrow 45 pips.  It did extend the NY sessions 17 pip trading range.  

As per the prior post, the 1.0706 remains a key level. That is the 38.2% of of the move down from the November election day high (see prior post HERE). Looking at the hourly chart, the 100 hour MA is currently at 1.0709 (and moving higher). The 38.2% of the move up from last weeks Tuesday/Wednesday low comes in at 1.0712.  The swing high from March 13 comes in at 1.07139.  All make for a key support target on the downside. 

We have stumbled lower.  Something had to give. The trend line was broken and this time there was a little more momentum.  There is room to roam.  Does the market have enough momentum to push it lower - even if it is a slow grind?