EURUSD sees buyer make a short term play. Can they keep the momentum going? | Forexlive

The EURUSD selling took the pair down from the highest level going back to April 2022 at 1.1032 to a low on Tuesday at 1.0669. That’s 363 pips in less than 4 days. The last rush to the downside took the pair below a swing area between 1.0711 and 1.0724 (see green numbered circles in the chart above). That momentum cannot be sustained. In trading yesterday, the low price stalled near the lower end of that trading range. In trading today, although the price dipped below the 1.0711 level, it could only get to 1.07087, before momentum died.

In the Asian session, the price move back above the upper and of that swing area at 1.0724 and started to build support against that level as sellers turned the buyers. The corrective move to the upside was on.

What now?

The move higher stake in the price above the falling 100 hour moving average . That is a tilt in the short term bullish direction. The moving average currently comes in at 1.0751.

The price also has more recently moved above the swing area between 1.0760 and 1.0775 (see green numbered circles). That swing area was home to a ceiling going back to early January and then a floor after breaking above on January 12.

The next target should the price be able to stay above the aforementioned broken levels, is between 1.0799 and 1.0805. You can add the 1.08072 level as well which represents the 38.2% retracement of the tumble lower from last week’s high.

Ultimately, if the buyers are to start to be taken more seriously and retake more control, getting above the 38.2% retracement is a minimum hurdle. The 200 hour moving average of 1.0825 (and moving lower) would be another target to get to and through. Last Friday, the price cracked below both the 100 and 200 hour moving averages after the much stronger US jobs report.