The EURUSD has fell below the 100/200 hour MAs after the jobs report and also below a swing area that was a ceiling going back to mid- January between 1.0866 and 1.0874 (see lower "Red Box" on the chart above).
The price decline continued toward the next target near 1.0799 and 1.0805. The subsequent corrective move higher stalled near the swing area again near 1.0866 to 1.0874 before restarting the downward move. These levels were outlined in my earlier video HERE.
The price low has just reached the 1.0799 target.
What now?
Dip buyers will want to see this level hold. Risk is defined and limited against the area. If it holds, and the price can get back above the broken 38.2% a 1.08207, the buyers will look toward 1.08345 and above.
On the downside, on a break below 1.0799, I would expect more selling with the same midpoint of the 2023 trading range at 1.07558 along with the low of the lower "red box" between 1.0760 and 1.0775 as a target area. A move below that level is another key target area to get to and through if sellers are to take back more control.
Meanwhile, stocks have continued the drip to the downside.
- Dow is down 165 points or -0.46%
- S&P is down -45 points or -1.07%
- NASDAQ index is down -194 points or -1.59%
