In an earlier post, the EURUSD moved back above the 100 hour moving average at 1.08856 (blue line). Getting above that level tilted the bias in the short term more to the upside… if the price could stay above.
The price could not stay above.
As a result, the price has rotated back down toward a more conservative support swing area between 1.0863 and 1.08728 where support buyers still hoping for a rotation back to the upside are leaning as risk can be defined and limited against that area.
So there is disappointment in the short term. The rally ended way too soon given the break of the 100 hour moving average, but there is some support against a swing area.
What next?
There is no choice except to respect the price action from the “market”. The buyers had their shot and missed (just like the sellers had their shot below the swing area earlier today).
It would now take a move back above the 100 hour moving average to give the buyers another shot to the upside. Absent that, and a move below 1.08633 should see more downside momentum with the low from last week the next major target.
