Cracked below trendline at 1.1864 and swing area between 1.18592 and 1.1868
EURUSD retraced the day’s gains. The Asian session low hit 1.18498. The low price just hit 1.18507 (just one pip below this level).
Price action in the Asian session saw an initial decline followed by a return to the upside in the European session. Traders at the highest leaned against a swing area in the 1.1891-1.18961 area. The subsequent downward movement seen in the London morning session has now carried the price below an uptrend line on the hourly chart at 1.1864 and also below another tipping area between 1.1859 and 1 , 1868.
Traders are looking for more downside which would likely tip against the 1.1868 level as the risk defining level. The next downside targets would include the 100 hour moving average at 1.18414 followed by the 200 hour moving average at 1.18337. Below that traders will look to Monday’s low price at 1.18135.
A return above the 1.1868 level would spoil the return to the downside, but is certainly possible given the upward and downward price action and generally an upward movement from the week’s low last. Nonetheless, breaking the trendline is a more downward tilt from a technical standpoint.
PS. Overall, the Euro range is only 41 pips against the 22 day average (about a month of trading) of 78 pips. As a result, there is room to move one way or the other right now, of course sellers are trying to exert more control.