We've seen this area before... Can the price break below it
The EURUSD has found support in the 1.0499-1.0520 area a number of times. In the 2nd half of December, the price did move below the area and moved to the cycle low at 1.0339 early in 2017 before starting the rallying into February.
Now we are back testing that support area. A break below should open up the door for further selling. The 1.0453- 1.0461 area will be the next targets on the downside. The March 2015 low was 1.0461. The Jan 11 swing low reached 1.0453. Below that and traders will be looking toward the 1.0339 low.
IF support does find buyers, the risk for shorts will be the 114.20 level and then the falling 100 and 200 bar MAs. Traders leaned ag. the 100 hour MA just before the last leg lower (see blue circles). A move above that MA (at the least) would be a shift to a more neutral intraday market (if it stays above).
PS the range for the EURUSD is only 50 pips. The 22 day average is 72 pips. So there is room to roam on a break.
