The reach reached the average over the past 22 trading daysThe EURUSD has been sharply falling in the last hour (see before post). The range of my previous post was of the order of 37 pips for the day. Since then, we have added an additional 53 points. The range is now 90 pips. The average 22 days (about a month of negotiation) of 92 points. So we have reached the bogey (for the most part).
I wrote earlier, the market was looking «for a» push. «The rates rose a bit which helped the dollar, but the biggest catalyst could have been the technique.
The share price saw the EURUSDs price movement below the 50% retracement at 1.19573, then the 200 hours from MA to 1.19508.
He then moved below the 1.19255 level. This level was 61.8% of the upward move from August 31 low AND yesterday’s low.
The pass below this level, pushed below 100 bar MA on the chart in 4 hours at 1.19116 (green line step in the chart above). The 1.1910 level is also the high swing from early August (it was the high of the year at the time).
The low reached 1.1904 and found buyers. I can see the 1.1900 natural support, the 1.1910 / 11 area and the average of the trading range as a reason for fall stall.
We currently trade above the 1.1910 level, but below the 1.19255 level (61.8% and former low).
The sellers would now like to see the stall correction in advance of the 1.19255 level (the level is close to the risk for shorts), but need the extra support lower to keep the train moving downward.
If the trend continues and the trade range above average, do not forget the 1.1876 area. This level is the low swing dating back to 2010. A trend line on the daily comes to 1.18789 area (see chart below). Which should put a stall in the fall if tested (but I expect stops on a break too).
Until the push however, the 1.1900-1.1910 is an area of the eye for a profit taking.