The EURUSD is trading down for the second consecutive day, with yesterday's price initially moving upward but later giving up those gains after falling back below its 100 and 200-hour moving averages (blue and green lines in the chart above). The price yesterday closed within a swing area around the natural support level at 1.1000.
Today, the selling continues as the price breaks below its 50% midpoint of the move up from the April low to the April high, which stands at 1.09632. This midpoint lies within a swing area between 1.0961 and 1.09653 (see red numbered circles), which previously formed a floor between April 24 and May 1 and was retested during employment Friday (and held). Falling below this area tilts the bias more towards the downside.
Last week's low came in at 1.09413, holding just above a swing area between 1.0933 and 1.09378 (see green numbered circles on the chart above). As the EURUSD continues to experience downward pressure, traders should keep an eye on these critical technical levels to gauge the currency pair's next move.
Key early break for the EURUSD technically. Can the sellers keep the pressure to the downside? They continue to hold the strongest hand started after breaking back below the 100 and 200 hour moving averages yesterday.
