The EURUSD has been selling off sharply since its last swing high at 1.09356 on April 21. The price is now on its fifth day lower. The low price just reached 1.05383 taking the pair to the lowest level since March 2017. Recall from yesterday the low price stalled right near its 2020 low of 1.06347.
The move down over the last five days has now taken the EURUSD down 400 pips or -3.65%.
Looking at the daily chart, the decline moved down to test a lower trendline which on my chart cuts across near 1.0538. So far support buyers are trying to hold against that trendline level. A move below would open the door for further selling.
Drilling to the 5minute chart below, there have been little in the way of corrective moves over the last five trading days.
Looking at the chart of the EURUSD, most of the price action has taken place below the 100 and 200 bar moving averages (blue and green lines). Yes, there were corrective moves above both of those moving averages (see red shaded areas). Those moves should have led to increase momentum buying. However, note in each of those breaks, there was modest buying but limited buying. Once the price moved back below the moving average lines, buyers gave up. Sellers returned and the price saw increase momentum to the downside.
Traders in the short term are taking a clues from those failures and keeping the pressure on the EURUSD pair.
Ultimately if the price is going to rebound off of a low (and the support against the current trendline may be a pause point), the price would need to build and take the price above - and stay above - the falling short term moving averages. Absent that, and the buyers are simply not winning.
As I type, the EURUSD is making new session lows at 1.05325. The buyers are not winning.