The last 3 of 4 days has seen the EURUSD trade to new lows, only to reject the moves
The EURUSD moved to a new September low for the 3rd time in the last 4 trading days. Like the previous 2 other breaks, traders rejected the moves, and the price snapped back higher.
Today, the price took out yesterday's low at 1.17308, but stalled at 1.17194. Yesterday, the price moved below the September 16 low at 1.17363 to 1.17308 before failing and moving back higher. That is frustrating for traders playing the breaks (you have to respect the breaks).
The reluctance to go lower may also could suggest underlying buyers in the pair. There definitely were buyers back on September 16 when the price snapped back rather sharply.
However, both yesterday and today has seen more modest bounces. So there is much to prove if the buyers are trying to take control.
Looking at the hourly chart above, the corrective price off of the low today reached 1.17667. That was just below the closing price from yesterday at 1.17695. If the price is to go higher getting above that closing level from yesterday and staying above is step number 1. Step number 2 is to extend above the 38.2% retracement of the move down from yesterday's high at 1.17774. That is what is needed to give the buyers some more confidence that the low is in place.
If the price cannot do that, traders need to respect the lower lows even if they are not all that significant.