EURUSD falls below the 200 hour moving average
The EURUSD is moving below the 200 hour MA at 1.05827 (green line in the chart above), and the 50% of the December range just below that level at 1.05815.
The low just reached 1.05776. IT is the first look below the 200 hour MA since November 30.
On December 7, the price tested the 200 hour moving average and bounced. On December 12, the price also approach the 200 hour moving average and found support buyers.
Getting below the 200 hour moving average – and staying below – would be more bearish from a technical perspective.
The price is also moving below the earlier December lows which came between 1.0584 and 1.05943 (see red numbered circles). On December 13, the price moved above that swing area and traded up to the high price reached last Thursday at 1.07353 before rotating to the downside after the FOMC the rate decision showed the Fed had a higher terminal rate. On Friday after an early bounce, the price moved below its 100 hour moving average and closed near the 50%/swing area.
Today, the price rallied higher, and extended back above its 100 hour moving average, but could not sustain momentum and the selling returned.
Traders will now look for increased downside momentum away from the aforementioned cluster of technical levels up to 1.05943. The 61.8% retracement 1.05452, and another swing area down between 1.0480 and 1.0496 are the major downside targets going forward.