Technical Analysis

EURUSD extends to new lows for the day and back below MA support levels

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The EURUSD up and down volatility continues.

After trading near the 100-hour moving average (blue line in the chart below) in the Asian/Pacific session, the price moved sharply higher. In the process the pair moved above the swing level from Friday’s trade just above the 1.1200 level, but fell short of a high price from last week and the high price for the year 1.1213.

The subsequent move lower – which was fast as well – took the price back below the 100 and 200-hour moving averages (blue and green lines). The low price has tried to extend toward the 38.2% retracement of the September trading range at 1.1132, but fell just short of that. The price currently trades between that retracement level (at 1.1132) and the 200-hour moving average above (at 1.1152). Extending below the 38.2% retracement would target the 1.1121 – 1.1125 level (say green numbered circles on the chart below).

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