The EURUSD is back below the technical support area from whence it broke above yesterday (see earlier post by CLICKING HERE). That area include the 1.2701, the broken trend line connecting highs from Monday, Tuesday and Wednesday, and the 38.2% retracement (at 1.26885 – see chart below). The initial test earlier this morning against this cluster of support held and the correction took the price up from 1.2702 to 1.2733. However, the post-Draghi speech headlines has not been so lucky for the buyers/longs and the pair is breaking lower.
The battle of the who wants to be the weakest currency continues with the EUR winning the battle today.
EURUSD falls back below the break point from yesterday.
The next major level will come against the 100 and 200 hour MA at the 1.2632-38. The old trend line is at that level too (see hourly chart). Resistance/RISK? Back against the area from whence we broke yesterday and again today – the 1.2688-1.2701 area.
We might have to get used to this back and forth type of trading.