Tests the low levels for the day
The EURUSD has been able to keep the sellers in control in corrective trading in the NY session.
The two rallies off the lows were able to find sellers in the 38.2% to 50% retracement of the days range. Each of the moves were able to get above the 1.0759 level. As per my earlier post today (click here), the 1.0759 level corresponds with the low from September 2003. Although the price extending above this level on 2 occasions, the momentum could not be sustained. I would expect that this area should provide more resistance going forward - as a result of the two failures - if the sellers are to remain in control.
Looking at the hourly chart, the price is also below the 50% retracement of the move up from the March 13 low at the 1.07565 level. The swing low from March 23 is at 1.0768. This area - in addition to the resistance from the 1.0759 level - should now cap the upside.
Targets on the downside include:
- 1.06869 – the 61.8% retracement of the move up from the March 13 low
- 1.0655 – the low price from March 20
- 1.06159 – the low price after the FOMC spike (March 19 low)
- 1.0 611 – the low channel trendline (this is moving lower)
The action has been choppy - especially during the New York session – but sellers remain in control.
