November 08, 2024 at 03:28PM
The EURUSD is ticking lower in the US session and in the process is moving away from a swing area between 1.07609 and 1.07767. Staying below below that area keeps the buyers firmly in control. It is a close risk for sellers/traders.
The Federal Reserve cut rates by 25 basis points yesterday, but the thoughts are that a Trump presidency will not be great news for EU given threats of tariffs. That is pressuring the EUR.
A review of the week had the EURUSD closing last week at 1.0887, and moving up to a high of 109.365 on Tuesday. That move to the upside tested its 100-day moving average of 1.09418 before starting the slide on the election results.The fall gathered momentum on the break of the 200-day MA at 1.0868 and then the 100-bar MA on the 4-hour chart (at 1.0824 currently)
The corrective move higher yesterday moved up to test its falling 100 bar moving average on the 4-hour chart but found willing sellers before rotating to the downside once again (sellers remained in control.
The move below the swing area between 1.07609 to 1.07767 ratches down the close risk level now.On the downside, the triple bottom near 1.0668 seems like it might be the magnetized target for sellers if the price can stay below the swing area up to 1.07767. The low this week got within 11-17 pips of that swing area (with a low at 1.06819).
This article was written by Greg Michalowski at www.forexlive.com.
