February 8, 2023

EURUSD tests last week’s low. Price remains in the trading range.

EURUSD on the hourly chart is testing the low from last week

The EURUSD on the last trading day of the year broke above recent swing high area levels/areas and extended above the November 30 high of 1.1382. The low price extended to 1.13857, but could not go any further and rotated back to the downside into the close.

In trading on the first day of the calendar year, the price calling continued as dollar buying led to a sharp fall in the EURUSD. Technically, the price cracked back below its 100 and 200 hour moving averages (blue and green lines) at 1.13258 and 1.13218 respectively, and did not look back. Although the price corrected ahead of the low from last week at 1.1273 into the close yesterday, the the decline has restarted. The pair has tested the low from last week in early US trading (the low just reached 1.12717).

A move below that level would open the door for a move toward the next swing area between 1.1259 and 1.1263. Move below that level and traders will once again start to focus on another swing area between 1.1226 and 1.1233.

What next?

Although lower, the pair is finding some “stall” near the low from last week at 1.1273. Getting back below the 1.1273 level – and staying below the level – is needed to keep the pressure on the pair.

Drilling to the five minute chart below, the lower – but up-and-down price action – has seen the 100 and 200 hour moving averages on that chart catch-up (blue and green lines) currently at 1.1289 and 1.12955. Traders tried to take the price above those moving averages in the European/London session. However, after breaking back below, the sellers returned pushing the price to new lows.

Watch those levels for intraday bias clues. Stay below and the sellers remain in control. Move above and the ups and downs are today are likely to continue.


EURUSD on the 5-minute chart

Source link