Let me preface by saying that there are other fish being fried at the moment as a result of the shake up from the CHF fallout. There are many losers. A few winners. That dynamic is not healthy. Nevertheless, trading continues. So we continue on.
EURUSD lows from 2005 came in at 1.1635 and 1.1661. The highs today are contained by those lows.
The EURUSD has remained under pressure and is trading below the November 2005 low at 1.1635 level (see monthly chart above). The price did move above the level for moments in trading today (the high reached 1.1647), but found sellers against topside trend line and the 50% of the move down from the NY session high in yesterday’s trading on the 5 minute chart below (the start of the trend leg down – see 5 minute chart).
For today if the price can stay below the 100 and 200 bar MA and the trend line currently at the 1.1617-22 area (see blue and green MA in the chart below), then the sellers remain in control. A move above should still have sellers against the 1.1635 area but it would muddy the water a bit for the bears in trading today.
EURUSD has short term resistance against the 100 and 200 bar MA and the 1.1635 level.
On a break of the low, the door opens for a move toward the 1.1530 area. This is the lower trend line connecting lows.The pair found support buyers against the line on two separate occasions yesterday.
EURUSD hourly chart.