The EURUSD buyers on Monday in the early part of the day, tried to take the price above its 100-hour moving average (blue line in the chart below), but could not sustain momentum. The price started to wander to the downside and in the process extended below the 61.8% retracement of the July trading range at 1.10017.
Today, that retracement level ended up holding resistance in the early Asian and early European morning session giving the sellers the go-ahead to push lower. The price is trading at new session lows as the North American session gets underway. The low has reached 1.0955. What next?
On the downside, the next target comes in at a swing area between 1.09329, and 1.09421. Below that and traders will start to look toward the 100-day moving average at 1.0909.The last time the price tested that 100–day moving average back in early July, support buyers came in and pushed the price back to the upside. That increased the levels importance. If tested, it remains a key barometer for both buyers and sellers. If the price were to move below, the door would open for more downside potential. If the price were to hold and stay above, the buyers and sellers would start a new battle with that moving average as support.
On the top side, a move back above the 61.8% retracement would hurt the bearish bias in the short term.
