The EURUSD corrected higher last week
The EURUSD corrected higher last week reversing more than half of the most recent move to the July 30 downside. The move to the low on August 20 took the pair’s price to a new 2021 low (see daily chart below) taking out the low of the end of March at 1.17035 and the low of an earlier August at 1.17053. The new low price for the year reached 1.16634.
Piercing the hourly chart, the price moved last week and remained above its 100-hour average Monday. On Tuesday it moved back above its 200-hour moving average (green line in the chart below). The price actually tried to get back below the 200-hour moving average on Tuesday and Wednesday, but the breaks were short-lived, and reversed higher in mixed trading. On Friday, the euro moved higher on the back of the more colorful Fed chair at Jackson Hole.
Today saw one of the up and down hacking action. The range for the only 22 pipes of the day. The average is 48 pips during the last month of trading. Theoretically the price remained above the 50% midpoint of the move down from July 30th. That level comes in at 1.17857. The low in the first hour of trading reached around 1.1789 before turning back to the top.
The price moved above the 1.1800 level to an intraday day of 1.18074, but turned back to the downside and trades right around the natural resistance at 1.1800 to start the North American session. Be above that level and traders will target the 61.8% retracement of the July 30 move down at 1.18146. Above that and traders will look at 1.1830.