EURUSD corrects lower
The EURUSD has corrected modestly lower today after reaching an upside target at the 1.2088 level earlier today (the high reached 1.2087). That high corresponded with a swing high going back to January 4, 2018 on the pairs move higher at that time (see daily chart below). I spoke of the target in the post yesterday.
Drilling to the hourly chart below, the fall from the high today has moved down to test the underside of the broken trend line at 1.2039. The trend line was broken yesterday, and after doing so, found a surge in momentum to the upside as a wave of new buyers overwhelmed the sellers.
That trendline is the closest support target for the pair now (and it is moving higher). Stay above, keeps the buyers in control with the 1.2088 level as the next target to get to and through.
Move below the trend line, and the sellers would still need to prove that they can take back more control. To do so, I will be looking to get back below the 38.2% of the move up from yesterday's low at 1.20232 as the minimum target to get below.
Failure to get below the 38.2% retracement, and the correction from the high is still a "plain vanilla" variety.
If the price can reach that retracement, the 50% of the same move higher at 1.2003 corresponds closely with the high from Monday's trading (at 1.20027). A move below that level would also signal additional bearish momentum.
