EURUSD works its way back to support as momentum slows
Trend move stalled
The EURUSD ripped higher with little in the way of corrections. When trend legs (fast directional moves) do not correction below the 38.2-50% retracement of the leg higher, it says to me, that the trend is in tact. That is what we saw on the way higher. There were three legs higher and each held above the 38.2-50% correction zone (yellow areas).
The last leg , however started to lose some momentum. The price moved down to test the 50% level (see blue circles 1 and 2 in the chart above). The next high came in below the prior swing highs from earlier in the day. Sellers started to emerge.
When the price fell below the 50% there was a move wander lower. We currently trade at 1.0573.
Is the buying all done?
Not so fast. The price action and wander lower so far is just a slowing of the trend. A consolidation. A correction. A break below the 100 hour MA at 1.05618 would be represent more of a bearish clue for traders. If the price can get and stay below it - and then the 200 bar MA on the 4-hour at 1.05489 - that would be more bearish again for the pair.
For now, look for support buyers on the dip with 1.0560 the area to lean against as a risk defining level.