Trying to move away. 200 day MA is the next target at 1.11641
The EURUSD is trying to push lower with a bigger move below the 100 day MA. Now before you get too excited, the 100 day MA is at 1.11798 and the low is 1.1170. So only about a 10 pip break. That is not a lot. Nevertheless it is a key time for the pair.
If the price can stay below the 100 day MA, the next key target comes in at the 200 day MA. That MA is down at 1.1164.
On Tuesday, the price moved below that MA line before the ECB headline (the one on reversing QE "sometime" before the end of QE - see Red area). Last Friday, the price also dipped below the line but that break was quickly reversed.
Most of the focus today is on the GBPUSD of course (and other pairs that have GBP attached to it), but the EURUSD is trying to join in some of the dollar bull fun. However, if the sellers have ANY chance with this pair, they will need to see the price action take the price below these MA lines and stay below (especially the 200 day MA). Failure to do so, will simply disappoint and could lead to a run the other way.
PS the range for the week is 106 pips (Low down at 1.1137, high at 1.1238). That is the lowest range since August 2014 (that summer of 2014 included the World Cup and forex fixing scandal). The chances are that the range will be extended.
The sellers are trying to make a play. However, they - and other sellers - need to keep the pressure on. It is obvious to say, but it takes more selling to keep the price moving lower and lower. If the sellers turn to buyers or the sellers dry up, the price momentum reverses. Technical levels, like these MA lines, help traders to sell (or to buy), by giving something to lean against. But it still needs the traders to sell and keep the momentum going....
