Bounces into resistance area on the hourly chart
The EURUSD moved to the lowest level since April 24 and in the process fell below a swing area in the 1.0808 to 1.0815 area. The price stalled randomly at 1.0781. The price correction off the low has moved the pairs price up toward that resistance area. The high moved to 1.0819 – above the 1.0815 high level. However the price has move back below.
The trading question is can this area now find sellers. If so a rotation back lower with the downward sloping trendline as a target would be eyed. Another swing area at 1.0755-63 would be targeted. The low from April reached 1.07265,
If the price starts to trade with more momentum above 1.0815, a rotation back toward the 1.0832-40 would be eyed. The 61.8% retracement of the move up from the April 24 low is in that area at 108.379.
Taking a broader look at the daily chart, there have been 5 days in 2020 where the price traded below the 1.0755 – 768 area (see red shaded areas). Getting below that area – and staying below – would be more bearish on the daily chart.