Support turned quickly to resistance after overnight droop
1.0800 was a level I was looking at for decent support to show. It was about as solid as a soggy tissue.
What has been more solid about the level is the resistance that's shown up there, particularly nearer 1.0805/10.
EURUSD 15m chart
It's the low 1.07's where we should see the next main support and while we stay under 1.0800, it's more like we see that than not. Break 1.0700 and we'll be on for a test of the 2015 lows.
EURUSD daily chart
Every time we step down through support we'll see the resistance strengthening. While intraday 1.0810 is closest, followed by 1.0820/30, 1.0860, 1.0890, 1.0900, 1.0920 and stronger at 1.0945/50.
Support was finally found at 1.0729 and we're trying to hold 1.0760 right now, so 1.0760-1.0790/800 is the ballpark this instance.
Whatever you think about the reasons for the moves we're seeing, they're not ready to be fought just yet. This is one of those moments where reality is seemingly far different to what the market is saying and doing, and the feeling that you need to trade against can become strong. This is a strong USD move and there's more than just a few banks issuing calls behind it. The wider market is all leaning the same way and that's not a force you want to battle in the short-term. If you don't think these moves are reflective of reality, and want to countertrade it for the longer-term, by warned that there may be plenty of fuel left in this tank.
