The EURUSD ran to a new low which extended to a low of 1.0555. That moved away from the 2024 old low at 1.06005. Recall yesterday, the price moved below that level to a low of 1.0594. In trading today the price moved to a new low of 1.0592 but each break failed.
After the CPI data, the price moved back up toward the swing low from May 1 at 1.06491. The high price reached 1.0653 and quickly reversed back to the downside.
Once the 1.0600 level was broken again, buyers turn to sellers forcing price to the low at 1.0555.
With the buyers having a chance and failing, and the sellers taking control below 1.06005, the time is now for the sellers to put a lid on any correction near the old low for the year. If the price can stay below that level, I would think that there will be added disappointment on the failed breaks.
PS Also in the area is the 38.2% retracement of the daily chart. The move up from the 2022 low to the 2023 high has the 38.2% retracement at 1.06106. A more conservative risk level (i.e. stop) for shorts looking for more downside would be this level.
It is time for the sellers to take more control. Can sellers keep a lid on the pair between 1.06005 -1.0610 area? That is the key.
This article was written by Greg Michalowski at www.forexlive.com.
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