The EURUSD has moved down to test the next target at 1.09253 (see earlier post). Those lows correspond with swing lows from March 15 (see red numbered circles). Below that, traders would target the 1.0899 level (call 1.0900). That is home to a swing lows from March 10 and March 11.
Earlier, the price stalled in a swing area between 1.09576 and 1.09675. The move below that level on Brainard’s more hawkish comments open the door for downside momentum. The price also moved below the low from last week at 1.0944 (close risk for intraday traders now) and the 61.8% retracement of the move up from the March 7 low at 1.09499. Moving above those levels would spoil the downside breaks for the EURUSD and should see sellers turn to buyers.
Absent that, the sellers remain in full control.
