EURUSD moving below 1.11609 level

Technical Analysis

Author: Greg Michalowski | eurusd

Close risk for shorts at 1.1171 now

The EURUSD has wandered lower since the earlier post (EURUSD falls from key upside resistance) and is now breaking below the support target area at 1.11609-71.  The bears are taking more control. Risk is now defined by the 1.1171 level. 

Earlier today, the high stalled against a key resistance area defined by the 200 hour MA, 100 bar MA on 4-hour chart and the 50% retracement of the move down from the June high at 1.1213. The high stalled at 1.1212, and the wander lower began. 

Getting below the 1.11609-71 is not something new.  The price fell below the level on Thursday and into Friday. Before the data on Friday, the pair dipped briefly below the level (early NY trading).   What would be new is if the price can stay below the floor area.  Why is it an important area?  The number of swing levels in the range where buyers and sellers leaned (see red circles).