The EURUSD moved lower in the Asian session (see earlier post here), and entered into a swing area in the London morning session between 0.99258 and 0.9898.The 200 hour MA (green line) was also in that area near the low (at 0.9900).
Since then, the price has been consolidating up and down, but remains comfortably below the 200 hour moving average (green line in the chart above) at 0.99019 currently. That 200 hour moving average will be the risk defining level into the new trading day. Stay below is more bearish. Move above and there is more neutral from a technical perspective.
On a continuation to the downside, the swing low price from last Tuesday’s trade comes in at 0.9848, and that will be the next target. Below that level, and traders will look toward the 50% midpoint of the move up from the September 28 low at 0.98141. That midpoint level is also within a swing area between 0.9808 and 0.9816, increasing the areas importance on a test.
Move above the 200 hour MA, and getting above 0.99258 would have traders looking back toward the 100 hour MA at 0.99829 ( and now moving lower).