Admittedly, the EURUSD is trading near the middle of what has been a range between 1.0550 and 1.0743. The range has been in effect for the last 6 or so trading days.
When the market moves up and down, the moving averages move in the middle of the range.
Looking at the hourly chart, the 100 and 200 hour moving averages are at 1.06955 and 1.06988 respectively. The lower of those two moving averages has been holding support in the European/early US trading. That level has now been broken and we are seeing increased momentum to the downside.
The lower end of the up and down extreme is the next target. There is a swing area going back to mid April between 1.06529 and 1.06778.
With the break lower, the aforementioned moving averages are now resistance and a risk defining level for sellers looking for more downside.
This article was written by Greg Michalowski at www.forexlive.com.
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