But is also has more work to do
Is the EURUSD rolling over? That is showing signs of tiring?
I am sure the RSI people out their are probably looking at diverging RSIs (ok I peaked but you know I don't like that tool).
Other clues that are more in my wheel house, is that the:
- EURUSD traded at a new high for the year today above 1.20694 (high from August 29th). The high extended to 1.2092. That was also a new high going back to January 2015. However, that break failed. We are trading away from that level at 1.2045 currently.
- Drilling to the 5 minute chart, the price has moved below both the 100 and the 200 bar MAs (blue and green lines) at 1.2058 and 1.20496 respectively. Stay below those MAs and the selling can continue.
What would give sellers more confidence?
The 38.2% of the move up from yesterday's low comes in at 1.2023. The close from yesterday comes in at 1.2021. It is always better if you have a failure at a run higher and then go out and take a positive day, and make it a negative day. So that is the next step to the downside.
Below that and traders will eye the 1.2000 natural support level. It is also near the 50% of the same move higher (at 1.20025).
So, there is some roll in the EURUSD but like every turn, there is work to do to keep the corrective move going. Thankfully, the technicals are doing their job in not only defining the risk (I am not surprise) but also outlining the targets that would make the correction more comfortable for the sellers.