Dead cat bounce keeps the sellers in control intraday
The EURUSD fell below the swing lows from last week and the week before. Those lows came in at 1.10725 and 1.10731. Since then, there are no hourly bar closes above that area. The bounce off the low has only been 12 pips. Trader's playfully call such a bounce a "Dead cat bounce". You can visualize that for yourself.
Drilling to the 5 minute chart, the trend lower over the last two days has seen little in the way of corrections. The largest was in the Asian session which saw the price move back above the 100 and 200 bar MAs (blue and green lines) but stall etween the 38.2-50% of the move down from yesterday's high (between 1.1136-434) When the price moved back below the 100 and 200 bar MA and successfully retested the 200 hour MA as well, the rout to the downside was on. THe price from the 200 hour MA moved from 1.1124 to a low of 1.10634.
The bounce off that low is only about 12 pips which saw the price stall just ahead of the 38.2% of the last leg lower. Can you say "dead cat bounce".
It will take a move above the 38.2-50% of the last leg lower to give buyers some hope. That would be the absolute minimum. Until then, the trend sellers remain in full control and the buyers scared.
