EURUSD moves to new lows in early US trading

Technical Analysis

Moving away from 100 hour MA after trading above and below today

The EURUSD is moving to a new low for the day in early US trading. Even so, the pair is in a narrow 26 pip trading range (it was 23 pips before the modest expansion). The next target is the low from Friday at 1.15407 and then the low for the year from last week at 1.15284.  The German ZEW fell to the lowest level since the start of the pandemic today which has helped support the downward trend today. 
 

Yesterday, the pair stayed below the falling 200 hour MA at 1.15769 keeping the sellers more in control.  Ultimately, the buyers will need to extend above its 200 hour moving average if they want to take back more control. The price is not traded above its 200 hour moving average since September 14, nearly a month ago. 

The pair is also trading back below the 200 week MA at 1.15689. Recall the price has traded above and below the 100 and 200 week moving averages. The 100 week moving average is at 1.1608 this week. The high price yesterday could not extend up to that higher moving average level. Today the price is moving away from the lower 200 week moving average (more bearish). The next key target on the weekly chart is the 50% midpoint of the range since the 2020 low at 1.14918.  

PS. the EURUSD just pushed to a new low and extended the range to 37 pips. The pair has moved below Friday’s employment low at 1.15407 and only has the low for the year at 1.15284 as the next target. 

Invest in yourself. See our forex education hub.

Articles You May Like

Yen Rebounds on Ueda’s Openness; Euro Starting to Break Down
Gold closes week above $2,700, US PCE data in Focus
Geo-political tension remains a strong tailwind for gold. Buy yellow metal on dips
Japanese Yen gains positive traction against USD, upside potential seems limited
Gold prices have the capacity to go even lower – TDS