100 hour MA and 38.2% in play
The EURUSD initially tested and then fell below support near the 1.1850 level (1.1846-1.1850 area). On the break below, buyer reversed to sellers and the price moved lower (with the overall USD buying as well).
The fall took the price to and through the 38.2% of the move up from last week's low at 1.1798 but stalled ahead of the rising 100 hour MA (blue line currently at 1.17918).
Going forward that area defined by the 38.2% and the rising 100 hour MA will be a downside barometer for the pair going forward. A move below opens up the downside for more selling.
On the topside, the move below the 1.1846-50 now sets that level up as a target to get to and through.
So far, the correction is just a correction. The price remains above the 38.2% (the minimum corrective target) and above the rising 100 hour MA. Nevertheless, there is some selling momentum that outs the seller back in the game, vs being dominated by the buyers seen during most of last week's trading.
