The 100 hour MA and double bottom from October were sellers clues.
The EURUSD has tumbled lower in trading today.
There were a couple of key clues that paved the way for the decline.
- The 100 hour MA (blue line in the chart above stalled the last gasp rally.
- The fall below the double bottom at 1.14315.
Those were bearish clues and the price trundled to a session low of 1.13776.
We are seeing a bounce off the level. We currently trade around the 1.1400 area.
Why the bounce?
Taking a broader look at the 4 hour chart below, the price near the lows was testing a lower trend line connecting the Septmber 10 and October 9 low. The trend line comes in at 1.1380. The low price reached just below that level at 1.13776.
For dip buyers/profit takers, it should be a level to consider in trading today. Stay above, and look for a potential test of the 1.14315 double bottom (should be hard to get above). Move below, and look for buyers to turn to sellers.
Drilling down to the 5-minute chart, the bounce is modest so far. So buyers are not running higher. There is a battle going on. If the price is able to get above the 38.2-50% and the 100 bar MA (blue line at 1.14253 currently and moving lower), that would be more bullish.
Failure to get above those levels, and the dip buyers against the lower trend line, will likely give up on the trade.
Right now we are simply between the support and resistance targets and looking for the next push, with a decent trend line at the bottom and intraday resistance above…