EURUSD falls below the support @1.0711.Stay below is bearish
The EURUSD is ticking to a new session low taking out the earlier low for the day at 1.06806. The low price just reached 1.06782. It is not running but a new low is being made.
Helping the downside today is the break below the the swing area between 1.0711 and 1.0724. The price traded most of the day on Tuesday, but rebounded back higher. ON trading on Wednesday and Thursday, the price tried to dip below the low of the area (at 1.0711), but could not sustain down side momentum.
Today, the price initially moved into that area and found support. More recently, however, the price moved below and stayed below the low of the swing area at 1.0711. More value is being developed BELOW that area.
The low for the week at 1.0668 is the next obvious target. Move below it would open the door for more downside momentum.
Taking a broader look at the daily chart, the highs this week stayed within a swing area between 1.07508 and 1.0805.. The high price on Monday reached 1.0798 and on Thursday reached 1.07904. The inability to move back above 1.0805 is a bearish tilt.
Having said that, the downside has more work to be done to increase the bearish bias.
The 1.0573 – 1.06156 (see green numbered circles) would need to be broken. Following that, the low price from January 6 at 1.04808 and the 38.2% retracement of the move up from the September low at 1.04600 would need to be broken to give sellers even more control from a longer-term perspective.
EURUSD stays below topside swing area this week