Forex technical analysis: EURUSD moves to new session lows

Technical Analysis

Author: Greg Michalowski | eurusd

Breaks trend line and broken retracement but stalls near a swing low from yesterday

The EURUSD moved below a trend line on the 4-hour chart at the 1.2412 level and back below the broken 61.8% retracement of the move down from the February high at 1.24016.  Earlier, the price could not sustain a rally above the 1.24336 level (swing level going back to February).

The breaks give the sellers something to "hang a bearish hat" on.

The not so bearish technical view is that the low at 1.2387 found buyers against a floor from yesterday on the hourly chart (see chart below).  After the run higher yesterday, the low corrective price could only reach 1.23847.  The low today got within a few pips of that low and bounced.  

Needless to say, a move below that level would give the sellers more confidence with the 1.23625 and the rising 100 hour MA at 1.2334 as other targets (the 38.2% is also at the 1.2334 level). 

Sellers a little more control but have more work to do to give sellers more confidence. 

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