EURUSD tests swing area on weekly between 0.9662 and 0.9708

Technical Analysis

The EURUSD is is trading to a new cycle low at 0.9726. That is the lowest level since October 2002. The price is also getting closer to the high of a swing area going back to 2002 between 0.9662 and 0.9708. Those levels defined a floor between the weeks of June 16, 2002 and October 13, 2002. The market at that time based against that area and ultimately started its run to the upside with the price peaking near 1.6100 and 2008.

That is the longer term prospective of where we are. Drilling all the way down to the 5 minute chart it shows the trend down continuing.

In the morning video, I spoke to the trend move to the downside today in the EURUSD and outlined the 38.2%-50% between 0.9774 and 0.97866 of the last leg lower, and the falling 100 bar moving average (blue line in the chart below) as the minimum level that would need to be broken if the buyers are to take control in the short-term. That is the minimum to show some short-term control. Absent that and the sellers remained in control.

The corrective high in the New York session moved right up to the 38.2% retracement at 0.97746 and the falling 100 bar MA near the same level, and found sellers against the technical levels.The price continued the trend like rush to the downside.

Sellers remain in control below the 100 bar moving average on the 5 minute chart.

You can see my analysis HERE (go to 2:57 to see the EURUSD technicals).

The trend to the downside in the EURUSD remains intact. There is a key target area on the weekly chart being approached. However it would take a move back above the falling 100 bar moving average on the 5 minute chart in the short-term (and staying above that moving average level) to give the buyers the minimum amount of control.

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