Swing levels, 61.8%, trend line all converge in the 1.0990 to 1.1000 area
The EURUSD is running into a cluster of support defined by swing levels, the 61.8% retracement, a lower trendline and the natural 1.1000 level. The low today has reached 1.1098 (see the 4 hour chart below). A break below that cluster of support should solicit more selling pressure. The low from October 8 comes in at the 109.40 area. That would be one of the downside targets on increased selling momentum.
The current price is back higher and off that cluster support level and trading at 1.1010. The high for the day only reached 1.1020. So the price action is limited. Traders will be looking for a break in either direction.
Looking at the hourly chart below, a move to new highs would look toward the 100 hour moving average at 1.10288 and a topside trend line just below that level. The price of the EURUSD is not traded above its 100 hour moving average since breaking below on November 4. A move above would give the dip buyers against the cluster of support added confidence and should tilt the bias a little more to the upside. The high a Monday at 1.10425 and the 200 bar moving average on the 4 hour chart at 1.10517 would be other upside targets.
