Failed break leads to buyers remorse
The EURUSD made a break to the upside and above the 61.8% of the move down from the October 17 high at 1.14657, and a trend line near the same level (see chart below). The price moved higher to a session high of 1.1472 but that was it.
The price action reversed, buyer had “buyers remorse” on the failed break and turned around and sold. It happens.
Traders have now pushed the price to new session lows in early NY trading and are trading above and below the 50% retracement of the same move higher at 1.14178.
This should be a stall area and we are seeing some up and down action around the level, but be aware that the bounce off lows today have been modest (see 5-minute chart below). So buyers are having some problems gaining any upside momentum. On more weakness, the low from Monday reached 1.1393 and will be the next target. PS the price is currently trading around week end levels from last week at 1.14172.