EURUSD breaks to new 4 month low but can’t maintain momentum.

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The fall of a couple continued

The EURUSD started in the week in the Asian session to the downside, with the pair moving below the July 21 low of 1.17512, and trading at the lowest level since April 1 (4+ month low). The low for 2021 entered 1.17035 and that still remains a key disadvantage target for the pair.

During the descent, the pair moved below the swing lows from the 20th to the 23rd of July between 1.17512 and 1.17566. The low, however, could only reach 1.17416, before rebounding above the July lows and rebounding close to the 1.17512 level. The daytime high has reached 1.17684 so far, but has lagged behind. The current price is at 1.1757.

EYRUSD in the hour

Drilling to the 5-minute chart below, the move down after the jobs report took the price of a high at 1.1807. The correction of the lows today at 1.17416 has now seen the price reach to test the 38.2% of the move lower at 1.17669. The 50% midpoint of the move lower is at 1.17748. That area (between 38.2% -50% of that lower trend) is an obstacle for soaking buyers, but also a fair area to sell for willing sellers. Stay down, keep the pressure on the downside at the dominant vendors.

Also important now is the 100/200 bar MA on the 5-minute chart. The MAs sideways indicated a more balanced market. The price has traded above and below the moving average over the last seven or eight hours as buyers and sellers oppose it. The last two hours have seen the price hold against the moving average of 100-bar (at 1.17594). Pay attention to that level and the slightly lower 200-bar MA (at 1.1757), to give some daytime bias indices. Since it holds, buyers would want that to continue. If not, this could lead to a new rotation to the downside and sellers regain control of a day-to-day basis.

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