EURUSD squeezes out a new low for the year
Trades at the lowest level since July 2020…briefly
The EURUSD after some volatile down (on the CPI release), up (on the short squeeze?), and back down again (dollar buying) price action has squeezed out a new 2021 low at 1.15106. That low took out the low from last Friday (post US jobs report) at 1.15126, but only by less than two pips. The prices bounce back up to 1.1532 so far.
Given the up and down volatility, nothing can be ruled out. However, the break to a new low, but only by two pips must certainly be a disappointment for those looking for more the downside momentum. Just saying….
All those levels are targets on a corrective move higher (and potential stall points too). However, getting above each will give buyers more confidence on each successive break. At the same time, it would have the potential to squeeze the sellers who pushed the price lower in anticipation of breaking to new lows and getting out of this lower floor area. The low was broken, but not by much (only 2 pips).
PS Taking a broader look at the daily chart, the 1.1601 to 1.1611 was home to swing lows from September and November 2020. The high prices yesterday stalled within that area.
On the downside, the 50% midpoint of the move up from the 2020 low to the 2021 high (reached in January) comes in at 1.14892. That remains a downside target IF the sellers can keep control.