Trades to lowest level since May 2017
The EURUSD low today reached 1.09219 (bid side), which was just below the September 3 low at of 1.09236 and the September 12 low at 1.09262. That took the pair the lowest level since May 2017.
Looking at the daily chart, the price tested an him “old trend line”. That line connected lows from December 2018, March 2019 and April 2019, and September 2 . The lows from earlier this month did break below that line but were quickly reversed and the price closed back above that broken trend line (failed breaks). Often a retest will stall at the “old line”. That is the case in trading today.
Drilling to the hourly chart, today the price moved back above a broken trend line and retested the swing lows from September 23rd at the 1.09654 level (see red horizontal trendline). Sellers leaned against that level and the price moved to test the early September lows.
Holding those lows has pushed the price back above the “old trend line”. In the current bar, the price is staying above that trend line level.. That line is a bias defining level for the buyers and sellers. Stay above is more bullish. Move below and then below the three lows ina the 1.0922-26 area and the sellers are still firmly in control.
On the topside, the 1.09654 level remains a key level to get to and through. If broken, that would give the dip buyers against the old low for the year, more reasons to take the price higher. Failure to break and the ups and downs may continue, but it would also weaken the bulls case.
We trade above support at 1.09219 but below resistance at 1.09654. Something has to give. Intraday, the buyers are making the play but they have work to do to win the next battle.