EURUSD tests a lower swing level, retracing the earlier gains

Technical Analysis

The pair remained below its 100 hour moving average on the corrective move higher

The EURUSD is testing a lower swing area near 1.1721 and 1.17264. The move to the downside has nearly retraced the earlier session lows which came in just below that swing area at 1.17177. 

 

The earlier move to the upside today peaked at 1.1748. The low from last Thursday’s trade came in at 1.1750. The falling 100 hour moving average came in at 1.1755.  Ultimately, it will take a move above the 100 hour moving average to tilt the medium-term bias more to the upside.  Absent that and the recent price action is showing more left right downside bias.

Clearly the 1.1700 level is a level the market is paying attention to and like the 100 hour moving average above, a move below the 1.1700 level will be needed to increase the bearish bias (and a run toward the low from August 19 and August 20 at 1.1963 area).

Sellers more control, but there is some dip buying activity seen so far this week as well.

Invest in yourself. See our forex education hub.

Articles You May Like

Eurozone negotiated wage growth seen accelerating in Q3
Gold price scales higher for the fourth straight day on rising geopolitical tensions
Lowe’s beats on earnings and hikes guidance, but still expects sales to fall this year
Wall Street analysts tout our 2 cybersecurity stocks ahead of quarterly earnings
Sterling Gains Slightly as UK Inflation Accelerates; Euro Struggles Despite Wage Surge

Leave a Reply

Your email address will not be published. Required fields are marked *