Working lower. Below 1.0910 level (low from June 2016).
The EURUSD is moved closer to the next target for the pair at the 1.0858 level. That level corresponds with the low from October. The October low is the lowest low since March.
Prior to March, there has been a number of swing lows that bottomed in 44 pip range between 1.0777 and 1.0821 (see blue circles). There was a month (November 2015) where the price moved below and traded below. Post November, the price started to find support against the level once again (with one two break). At some point the EURUSD should make a break outside the Red Box in the chart above, that has confined the trading range for 21 months now ( see post here ). For the time being, the low today at 1.0869 and the October low at 1.0858 seems to be creating a floor for now in the pair.
Also of note from the daily chart is the low from June 2016. That low came in at 1.0910. That swing low started a pretty good move back higher. It kinda sticks out. Today we have moved below that level after testing the level at the close yesterday and finding some support early in the trading day today. Remember that level.....1.0910.
That is the bigger picture. What are we seeing in the intraday chart?
Looking at the 5-minute chart, the pair had a huge move yesterday - and a volatile day. The price moved up about 310 pips before falling 390 pips. Wow. Today the range is much less at 84 pips, but the price is lower, with more up and down action. We know of the 1.0858 target. The low stalled ahead of that level (as mentioned above). The other level is that 1.0910 level. The 50% of the day's range is near that level. In the London session we moved below that level, rallied above for about 20 minutes, but have now remained below the level over the last few hours. For today...stay below 1.0910 and the sellers can feel pretty good. Move above, and the waters get a little muddy.
PS. The EURGBP continues to fall too ( see post yesterday here )
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