In trading yesterday, the EURUSD fell to a lower trend line and found support buyers (see blue circle 3). The subsequent move to the upside, found sellers against/near the falling 100 hour MA. Traders leaned against the risk defining level (see falling blue line).
That hold against the moving average gave the sellers the go-ahead to push lower, and indeed they did in trading today. However they still needed to get below the lower trend line.
The price stepped lower and indeed, the pair fell below a lower trend line AND swing area near 1.1285 (see red and blue numbered circles).
That break now sets that area as topside resistance. Stay below 1.1285 is more bearish. Move back above, and there may be some covering/upside probing on the break disappointment.
On the downside, the pair is trading at the lowest level since December 23 and approaches the swing area between 1.1260 and 1.1263. A move below that level and it will open the door for traders to start to target the low swing area between 1.1226 and 1.1233. The low price from December 15 comes in at 1.12208.
Watching 1.1285 area for resistance. Sellers are more in control, but the technical break still needs to now keep a lid on intraday corrections. .
