Could not get to the 2019 low at 1.10265
The EURUSD has rallied back higher to retest the low from last week at the 1.10478. A move above should solicit more buying in the pair with the 1.1063-68 a target on more upside momentum. So far the level is holding, however.
The pair is working through the weaker Michigan data now and trying to stay below that old swing low.
The selling today does have a bit of disppointment in that the low for 2019 at 1.10265 was not breached. The low today is at 1.10326 so far. Needless to say, a move below that level will be needed to give sellers more comfort.
For the week, the high on Monday this week, stalled right where you would have wanted at the 1.11619-67 swing area (see higher yellow area). The other bearish developement technically, was the sellers below the 1.1100 level on Wednesday (and below the 100 hour MA on that day).
Remember the 1.1100 to 1.1109 area was home to swing lows in April, May and at a point in July as well (see green circles in the daily chart below). So putting a lid on the rallly on Wednesday there, was a key bearish clue for the pair. A move below the 2019 low will look toward the lower trend line (currently at 1.0966 and moving lower).
PS the highs just reached 1.10486. The low from last week is stalling the rally so far……