The EURUSD has not traded below its 2022 low of 1.11207 and in doing so trades at the lowest level since June 2020. The low price has reached 1.1105.
Looking at the daily chart, there is natural support at 1.1100. A trendline on the daily chart also cuts across near that level at 1.1096. Break below that level opens up the door for a further run to the downside. There is not a lot of support until you get toward the 1.1007 to 1.1018 area.
The price has seen a little bit of a bounce ahead of the aforementioned support down to 1.1096. The price currently trading at 1.1124.
Helping the tone is that stocks have seen a rebound especially the NASDAQ index. The NASDAQ index now trading above and below unchanged on the day and at session highs. The low price extended all the way to 12587.88. At the session low, the NASDAQ was down -449.61 points or -3.45%. The high price just reached 13053.40.
As I type, the price of the EURUSD has spiked up to 1.1152 as shorts get squeezed a bit. With the failed break, and the quick bump higher, focus may now once again be on buying against the old low at 1.11207 again. Be aware. Watch that level.
What would increase the bullish bias?
On the topside, looking at the 5-minute chart below, the 38.2% of the last trend move lower comes in at 1.11653. The 100 bar moving averages currently comes in at 1.11806 and the 50% of the last trend move lower cuts across at 1.11838. That area between 1.11653 and 1.11838 would need to be broken to increase the bullish bias going forward, and give the dip buyers some comfort. Absent that, and the sellers still remain more in control.
