Also cracked trend line and 100 bar MA on th 4 hour chart
The EURUSD started the week yesterday near the two week highs, and immediately started to run lower.
Looking back to the week of October 21, the pair started higher and moved to lower. Then last week, the price started lower and moved back to the October 21 highs.
This week, the up-and-down pattern pattern is so far continuing with the price moving lower again.
Today, the price has cracked below some key technical levels that put the sellers more in control on the 4-hour chart above.:
- The overlay of the 100 day moving average at 1.1118 was broken early in the Asian session, but rebounded. In the current 4-hour bar on the chart above, the moving average was broken again and this time the price ran lower
- A trendline connecting the October 14 low to the October 29 low was also broken at 1.1114. Last week on the FOMC day, the pair dipped below that trend line only to find support just ahead of its 100 bar moving average on the 4 hour chart (blue line). Yesterday, the trendline held support. Today's break and run is more significant
- The retest of the aforementioned 100 bar moving average on the 4 hour chart was next broken at 1.1110
- Finally, the 30.2% retracement of the move up from the October 15 swing low was broken at 1.1107
We currently trade at 1.1099. Staying below those broken levels keep the bears more in control. If the price starts to move back above those levels, the bearish waters become more muddy. For now the sellers are in control.
On the downside, the next target would come at 1.10848. The FOMC low reached 1.1079 and the double bottom from the last 2 weeks stalled near the 1.10724 area. That level will be a key barometer for the pair.
