June 07, 2024 at 04:31PM
The US non-farm payroll came in stronger than expected. That sent the USD higher and the EURUSD to new lows for the week.
The move lower has now reached to – and now through – the 38.2% of the move up from the May 1 low. That level comes in at 1.08134. Below that is the 100 day moving them to 1.08062. The low price of just reached 1.0805. The price is pushing against that key MA target. Can the sellers keep the “push” to the downside going through this level? If so, the next key target area comes against the 200 day moving average at 1.07859. The 50% midpoint of the May trading range is at 1.0782.
Typically, buyers will lean against the key daily MA on the first look. Having said that, they will need to get back above the 38.2% retracement of 1.08134 shortly to translate the buying into more confidence that a temporary bottom has been found. Move above, and traders would look toward 1.0825 – 1.0829 as the next target (low from Monday’s trade). I would expect sellers to lean against that level if reached as sellers look to keep control after the break lower today. .
This article was written by Greg Michalowski at www.forexlive.com.
