Trades at new lows as Draghi speaks
Back to normal at the ECB. QE will continue. ELA will continue. ECB acting as if Greece is here to stay.
Technically, the price is moving further to the downside in trading today. Looking at the four-hour chart, the price has moved below lower trendline support that currently comes in at the 1.0870 area. A swing low at the 1.0866 has also been breached. The next targets include the 61.8% retracement of the 4 month trading range at the 1.08453 and the 1.0188 low from May 27.
What would keep the bears in control?
Looking at the 5 minute chart, the trend leg down from the 1.0948 high to the low so far, has the 38.2% at the 1.0890. The 50% is at 1.0901 and the 100 bar MA on the 5 minute is moving quickly toward that area. Those levels will be eyed as resistance.
We have been talking about the magnetism of the price to the 100 day MA. Prior to today, the price had traded above and below the 100 day MA for 7 of 8 days. Yesterday was the break away. Today, the break has moved farther away.
The price is up testing the 38.2-50% on the 5 minute chart. Looking for sellers here for low risk defining trade....
