Tests the lows from Oct 4 and Oct 6th
The EURUSD is trading at new session lows and in the process is testing lows from October 4 at 1.1137 and October 6 at the 1.11397 level.
ON Friday, the price fell below this level and then took out a lower trend line (see red circles in the chart above). That break failed and the US employment volatility led to the price moving sharply higher toward moving average resistance at the highs both on Friday and again today (the 100 bar MA on the 4-hour chart AND the 200 hour MA). Sellers entered.
The rotation lower today has the pair back down testing that support floor at the 1.11374 -39 area.. Traders may look to lean against the level on the test, with stops on a break below.
On a break, the 1.1100 becomes the next major target area. It corresponds with the low from Friday as well as the broken trendline.
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