Sellers pushed below support cluster
The EURUSD traded above and below the 100 hour MA through most of the London morning session, but has pushed lower in the USD buying in the NY session.
Technically, the pairs break of the trend line and the 200 hour MA, opened the technical door to the downside and selling did indeed intensify.
The run to the downside has now taken the price below the 38.2% of the move up from the September 25 low to the high at 1.17469. Stay below is more bearish. The next targets come in at 1.17308, the swing low on October 7 at 1.17243 and the 50% retracement at 1.17211.
The pair has now reached a daily range of 78 pips. That compares to the 73 pip 22 day average (around 1 month of trading). Can the range be extended? Sure. Is the bias more bearish below the 100 and 200 hour MAs. Sure.
However, it may also slow the fall too. Watch the 38.2% as close resistance now. Stay below and we could reach down toward better support at the 50% area (home to swing area as well). Move above and we could see a little move covering. What is clear, is if the sellers are to keep control, the price needs to stay below the 200 hour MA (green line).
