Forex technical analysis: EURUSD slides below the 1.0560 level

A quick 60 pip move on the break

The EURUSD has made a quick break to the downside - taking out the 1.0560 level in the process. The push lower has moved once again to the next target at the 1.0500 level (see prior post by CLICKING HERE). The low has reached 1.05029. Traders are playing the range on the first look.

Now, the next questions for traders will be

• Can the price remain below the 1.0560 level above?
• Can the 1.05000 support below be broken?

A closer risk defining level will look toward the 1.0539-50 area. This is the 38.2%-50% retracement of the last leg lower today (see chart below). If the sellers come in against the 1.0539 level, this would be an aggressive move. There could be another test of the 1.0500 level before the weekend.