EURUSD falls to the 38.2% retracement of the 2023 trading range | Forexlive

The EURUSD has moved sharply lower after the much stronger than expected US jobs report (higher USD).

Looking at the hourly chart, the price has tumbled back below its 100 and 200 hour moving averages at 1.0899 and 1.0892 respectively. The price has also seen a dip outside of the “red box” that confined the pair prior to this week between 1.0834 and 1.09288.

Admittedly on Tuesday, the price fell below that level but rebounded and reestablish support near the level before moving to the upside on Wednesday and Thursday. The price peaked in early trading yesterday at 1.10308 before moving to the downside.

Yesterday the price tumble took the pair back toward the 100 and 200 hour moving averages, and in the Asian session today, the pair also found support buyers near that moving average levels.

However, the US jobs report was too much, and the price tumbled below those key moving averages.

What next?

The 38.2% retracement of the 2023 trading range comes at 1.08207. That is the next downside target. Below that look toward the low from Tuesday’s trade which is also a swing area going back in time to mid-January (see red numbered circles). That area comes between 1.0799 and 1.0805. Below that and the 50% midpoint of the 2023 trading range at 1.07558 is also near a swing low area between 1.0760 and 1.0775.