Went below key MA on Monday's gap lower. Back down testing the key level
The EURUSD is down testing the key 100 day moving average. That level comes in at 1.10467. The low for the day is reached 1.1043 so far. Looking back at the recent swing lows and highs the 1.1035 was a swing high going back to April 6, 2014. This area should be a low risk defining level for traders to lean against.
Should the support hold, a move back above the low from earlier today at 1.1058 is the closest target to get back above. Above that is the 38.2%-50% of the last leg down (starting at 11 AM ET) That area comes in at 1.1068-756. Apart from the rally that took the price up just before the London fixing, the trading for most of the London and NY session has been to the downside. However, a low risk support level against a key technical level will tend to attract profit-taking. So lets see if the level can lead to something more substantial as we head into the last hours of the trading day. On a break of the 1.1035 level it should open the door for further declines toward the low for the week at 1.09538.
