EURUSD moves into the lower swing area extreme of the consolidation area.

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EURUSD is moving into the lower extreme area

Technically, the pair traded up and up in London’s late morning session. The last high, found willing sellers just ahead of its falling 100 hourly moving average currently at 1.01865. The early hours in the North American session saw continued bearish erosion with the pair falling below a swing area between 1.0144 and 1.01509. The price more recently dipped below the swing low for the week at 1.0121. The low price for the day stopped at the 61.8% retracement of the move up from the July 14 low at 1.01105.

A move lower would have traders looking to break out of the lower end at 1.0096. I would expect more selling to occur below that level with the next target near 1.0070- 1.0074.

For traders looking for lower levels, a move back above 1.0144 – 1.01509 would soften the bearish bias (near term risk) somewhat. A stronger stop would be the falling 100 hourly moving average 1.01865 now. For the dip buyers above these levels it would provide comfort that once again the lower extremes held support.

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