The EURUSD moved up to test the 61.8% retracement of the move down from the January 2021 high during Tuesday’s trade. That retracement level came in at 1.1274. The high price this week reached 1.12749 right near that level. Sellers leaned and the price has been rotating to the downside since that time with a sharp move lower yesterday. Looking at the daily chart the price has also entered within a swing area between 1.1095 and 1.1134.
EURUSD backs into support on the daily chart
Drilling into the hourly chart below, the low today was near the low from yesterday. Those lows come in ahead of the 38.2% retracement of the move up from the July low to the July high. The level comes in at 1.1106. Moving below that level and below the target on the daily chart at 1.1095 is needed to increase the bearish bias going forward.
Conversely on the hourly chart, if support can hold against the 38.2% retracement, the focus will be on a rotation back toward the 200-hour moving average currently at 1.11707. That level was broken yesterday (and remained broken on the correction). A move back above the 200-hour moving average would ruin the short-term tilt to the downside from the break yesterday.
EURUSD on below the 200 hour MA.Targets 38.2%