EURUSD seeing some profit taking as European traders look to exit

Technical Analysis

Author: Greg Michalowski | eurusd

High stalls just ahead of underside of broken trend line.  

The EURUSD is seeing some minor profit taking as European traders look to exit for the day.

The price high stalled just short of the underside of the broken trend line at 1.2062. The high reached 1.2058.  The selling now has also taken the price back below the 1.2042 level. That level was the swing low going back to July 2012 (see earlier post). 

What now?

For those looking for more of a correction after the stall, the 1.2042 area is now close risk.  If there is more momentum lower, the 38.2% of the move up comes in at 1.2014 (see 5 minute chart below) and the 200 hour MA is up to 1.20055. 

When the price moved above the 200 hour MA today (and the 50% a 1.20018), the sellers switched around to buyers and marched the pair higher.  I would look for dip buyers (and shorts looking for a correction now) to step in around those levels.  

The move higher today looks as if it wants to go higher. If the support holds, ultimately the 2017 high at 1.2092 and the high from 2018 at 1.2088, are the real key levels to get and stay above.   It is up to the buyers to hold the support on the dip, base and take out not only the underside of the trend line but the double top at the 2017 and 2018 highs.  

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