The EURUSD traded below the aforementioned support target at the 1.3000-16 area (down to 1.29945). The new low simply moves the “Correction Zone” defined by the 38.2% to 50% retracement level of the trend move down today, lower. That area now comes in at the 1.30537 to the 1.30720 level ( see yellow area in the chart below). I would expect to see sellers against this area (risk defining level for shorts now).
EURUSD breaks below 1.3000 briefly but quickly rebounds. Sellers remain in control below 1.30537-72 area.
If the price moves above the 1.3072 level, it “muddies the water” a bit from a technical perspective. Simply put, if the sellers loved selling the market going down, they and others who missed the boat, should welcome and love the opportunity to sell against this “correction zone” area. If not – that is, the sellers don’t show up – buyers/profit-taking are showing more control. Corrections are the risk and investment, we must assume in order to stay on trends.
If you are one who thinks 1.3000 is it, leaning against that area now becomes an option on the failed break (with a stop below 1.2995). Again, risk can be defined.