EURUSD failed on it’s move back above weekly trend line and the sellers reenter.
The EURUSD is trading back below the trend line on the weekly chart at the 1.29309 level. The price traded above and below this line in last week’s trading, but closed above the level (bullish). The high today, however, could not extend higher on the first attempt and selling has reemerged. Lower EU trade surplus did not help the bias. The move lower (and below technical levels) puts the sellers back in charge, and frustrates the buyers who were hoping for a continuation of the correction higher.
EURUSD closed above the weekly trend line last week, but fell back below in early trading this week.
Looking at the hourly chart below, there were other bearish clues from it in trading today.
In the first hour of trading, the high (at 1.29705) could not extend above the 200 hour MA at the 1.2977 level (green line in the chart below). When Europe entered, the price action started it’s move lower. The price has now moved back below the broken trend lines seen last week (the buyers had their chance to take it much higher off the break, but FAILED), and also the 100 hour MA (blue line in the chart below – currently at the 1.2927 level).
Stay below the 1.2927-30 level for the day and the bears remain in control (RISK now for the shorts). The next targets become the lows seen in last week trading. They include 1.2908, 1.2896, 1.28825 and the low for the week at 1.28584. More intermediate term, the 61.8% of the move up from the 2012 low to the 2014 high comes in at 1.27865. This will be the next major target for the pair should the bears remain in control (see weekly chart above).
Nice try buyers, but no cigar on the first attempt.Look for the sellers against the 1.2927-30 area. It is the sellers turn to show what they can do.
EURUSD on the hourly shows the failure above triangle trend line and on the attempt to get above the 200 hour MA (green line). Back below 100 hour MA at 1.2927 now (risk area).
