First down day since April 22nd?
The EURUSD has moved to new session lows and in process is in negative territory for the day (the low 1.12205). This is the first down day since April 22 (6 straight up days). Stay below this level and the sellers should be energized a bit going forward.
At the highs today, the price got to within 10 or so pips from the 100 day MA at 1.1299 (high reached 1.1289). That may be close enough for traders to be encouraged by that test.
Looking at the hourly chart, the price also moved below the trend line resistance at the 1.1215 level . The 1.1187 level was high from Wednesday and the pair just went and tested that level. There has been a bounce back off that level.
Going forward, I think that traders will be eyeing the 1.1215-20 area as the line in the sand to stay below. If that can be done, there may be reason to expect more rotation lower. If it cannot, the selling could dry up once again.
It is Friday before a holiday weekend for some. So there could be some squaring up still to come.
