Swing area between 1.2112 to 1.2117
The EURUSD has bounced higher after 3 hourly bars that took the price sharply to the downside. Looking at the hourly chart, the bounce has taken the price to a swing area between 1.2112 and 1.2117. The high price has so far stalled between those levels. If the sellers can keep a lid on it there, it would keep them firmly in control. A move higher would have traders looking back toward the retest of the 100 hour moving average (blue line). Ultimately, it would take a move above that moving average again to frustrate sellers.
On the downside, the 200 hour moving average and 38.2% retracement at 1.2086 remains another target for the sellers to get to and through. The 1.2080 to 1.2086 area is also in play as a lower swing area (see green numbered circles).
When the price trends higher like it has since February 4, it does leave downside targets in its path on corrective moves lower. Stepping below those levels increases the counter trend bias. Today's run to the downside is the largest since the move higher started on February 4. As a result, the sellers are "making a play". Can they continue that momentum?
PS Yields 10 year yields have moved to a new high at 1.275%. The stocks are coming off again with the S&P and Nasdaq trading at session lows.
