December 23, 2024 at 03:20PM
The EURUSD moved higher on Friday but stalled at 1.0446. That was just short of a swing level on the daily chart at 1.0448. Today the high price was just short of those levels at 1.04446. The price moved lower with the USD moving back higher (EURUSD lower) in trading today. Going forward the holding of that swing area was a bearish tilt (see red numbered circles on the daily chart above).
The move lower has now taken the price also below the 50% of the trading range since the 2022 low. That level comes in at 1.04053.
Looking at the hourly chart, the price action today moved to that mid-point level, stalled briefly before breaking below the level. The price later in the early US session stalled on a bounce near that level and is now stretching to a new low at 1.03876.
For traders in the short-term, the 50% is the closest risk-defining level for shorts looking for more downside. Move above and the 1.0448 level is also a level to stay below that would keep the sellers in control.
Conversely, move above each of those levels, and the buyers start to chip away at the bearish bias and there is some confidence for the buyers at least in the short term.
This article was written by Greg Michalowski at www.forexlive.com.
