Approaches a trend line on the hourly chart intraday
The EURUSD has moved to a new day lows and in the process has erased the gains for the day.
The pair moved higher in the Asian session, and after a corrective move in the early European session, the highs for the day were retested near the 1.1900 level (the high for the day reached 1.18999). The inability to extend above the natural resistance level has led to selling over the last 3 hours (EURJPY weakness may have also contributed to the decline – CLICK HERE
The move to the downside has taken the price back below the 50% retracement of the month trading range at 1.1881, and also back below a broken trend line.
The pair did approach a lower trendline currently at 1.1852. The price is currently testing that trendline as I type. Getting below would be another step in the bearish direction
Also in play, as a downside target, is its 100 hour moving average at 1.18452 (blue line in the chart above). It’s 200 hour moving averages at 1.18307 and would also be a downside target on further weakness today.
Summary: Buyers had the chance, but the 1.1900 level prove to be too much of a hurdle, and the sellers have taken back control below the 50% retracement. The pair is running into support targets which may slow the decline.