Lots of ups and downs in the EURUSD
The EURUSD is lower on the day, but the fall has been somewhat limited. The last 12 or so hours has seen the price trade in a 44 pip trading range with the high at 1.17426. The low reached 1.1698 (call it 1.1700). We currently trade at 1.1730.
The high yesterday saw the pair stall at a topside trend line around the 1.1781 area. The corrective fall eventually saw the price move below a lower channel trend line. That turned the buyers to sellers and into the consolidative trading range that we are currently trading. The move to the downside was able to take a quick peek below the 38.2% of the last “leg” higher at 1.1704, but could not extend toward the next target at the 50% at 1.16807. A move below that level would have increased the pairs bearish bias.
The inability to extend lower AND the move back above the 38.2% retracement makes the current correction a somewhat “bland, plain-vanilla, test the 38.2% retracement” variety. Putting it another way, the sellers haven’t really taken much control back. The buyers are still more in control.
Having said that, the upside is still limited. As a result, the price can go either way, but the buyers still hold more control.
If the price is going higher getting above 1.17426 would be a target to get and stay above. Break that, and traders will be looking toward the highs from today at 1.1772 and the high from yesterday at 1.17809.
Pm the downside, get and stay below the 1.1700 level and the 1.1680 (50%) and the sellers are taking back more control.