Technical Analysis

EURUSD trades to lowest level since May 14

Takes out the June low at 1.21035

The EURUSD has continued it’s decline as dollar buying continues all of a sudden. The price of the pair moved below the swing area outlined earlier at 1.21254 to 1.21317. That area is now a risk level for shorts. Stay below (and out of the “red box”) keeps the sellers more in control. Move back above and the bias gets dinged a bit.  

The pair has also moved down and through the swing low from June at 1.21035. The price low reached 1.2092 and trades just above that at 1.2096.  Stay below 1.2106 is the best case scenario for the bears (see green numbered circles). 

On the downside, if the sellers can stay out of the red box, the traders can look toward a lower swing area between 1.2051 to 1.2056 (see purple numbered circles).  Not far from that level is the 100 day MA at 1.20419.  The last time the price has trading below the 100 day MA was back on May 6th. 

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