Close resistance at 1.1233-40 area
The EURUSD tumbled in London morning trading about 24 hours from the ECB decsision. The fall saw the price move below the 100 hour MA at 1.1250, pick up steam, and head below the 200 hour MA at 1.2184 before finding support buyers (option buyers/sellers) ahead of the 1.1200 level. According to Mike there is 2.83B expiring at that level. If you are a seller of options the biggest payoff is if the price goes out at the strike price. The options expire worthless at the strike price (are options sellers bullying the buyers?. Anyway, buyers showed up against the 1.1200 level and we are seeing a little rebound.
The price correction (off the low that is) has moved up to the 38.2% of the move down from high before the tumble (see 5 minute chart below) at 1.12313. Looking at the hourly chart, the 1.1233 level is the low from Monday's trading and was also near swing levels from last Thursday (see red circles in the chart above). The 50% of the move down comes in at 1.12399. That area is now close intraday resistance that the price is testing now. Looking for sellers here to put a lid on the correction and keep the sellers more in control. A move above the 1.1240 level muddies the water (has me scratching my head technically at least). Although there will be more resistance at 1.1250 where the 100 hour MA is found, the momentum lower move will lose some of it's mojo.
