It is almost too good to be true. The 1.2623 level was the low from January 2012. The correction after the break in May reached 1.26229. Today the price topped out at 1.26237. Can it be so perfect?
Traders short from that level have to be thinking they have great trade location and could be willing to look at the level as the stop level now. They are saying, let the trend back down resume. The question comes, will additional sellers start to overwhelm the buyers and make that happen? The low for the day is at 1.25388. The range was extended to 84 pips on the move to the high. The 20 day average is 113 pips. Can the range extend the low now? 1.2583 is closer resistance (old highs from the day). It is also 38.2% of the move down from the high. If sellers want to get on board, this level (up to 1.2590) would be a level to gauge willingness for more downside.
