Run above trend line and the 50% on Dec 31 could not be sustained
The EURUSD has stepped lower in trading today and in the process, has moved away from a topside trend line and the 50% retracement of the 2019 trading range.
Recall on Tuesday, the price moved above both the 50% at 1.12241 and a topside trend line at 1.12305 on its way to a high print of 1.12387. The buyers were putting the pressure on the bears/sellers (see post from Tuesday HERE).
However, after the New Years day holiday, the price high today reached 1.1224 - right below that 50% retracement level. That gave sellers an opportunity to lean against both technical levels. The price wandered lower.
Staying on the daily chart above, the price fall has moved to 1.11824. That was just above swing highs from October and September at the 1.1174 to 1.11787 area. A move below that level on the daily chart would tilt the bias a little more to the downside.
Drilling down to the hourly chart below, the rising 100 hour MA is also being approached. That MA comes in at 1.11772 (and is in between the levels on the daily. The 38.2% of the move up from the December 20 low comes in at 1.11726.
The combination of the levels, makes the 1.11726 to 1.11787 a target support area.
With the price trading at 1.1190, the pair is below the close resistance at 1.1200 and the Target supoort area at 1.11726-787. The first battle of the year is on, with the technical levels defined.
