...and that support is 400 pips from yesterday's high
Remember the 1.0634-1.0644(50) area. Yes, that was the area where there were a number of highs seen over the last 5 or so trading days (see chart below).
Well, the price went down and tested that level in the London trading session and bounced (see chart above). This would not be so surprising if it were not for the fact that the correction level, was 400 pips from the high about 17 hours ago. The 200 hour MA (green line in the chart above at 1.06477) is also in the vicinity of the low
At least it is to good to know the market still pays attention to key technical areas.
The price is back testing this area after the initial claims came in at 291K vs 290K last week. I would expect support buyers, until it does hold (then should see more stops as the market is still nervous, anxious and fearful). The 1.0680 (61.8% of the move up?) is a target above. On the downside, a break of the low, will have the 100 hour MA below at the 1.0608 level to target.
Looking at the 5 minute chart, the price action is settling a bit. The 100 bar MA for the most part, the 100 bar MA held resistance. The 38.2-50% of the move down from there comes in at 1.0676-879 (see chart below). If the market is to move away from the support area below, the price has to move and stay above this correction zone now. If not, the pressure will likely remain on the pair.
