EURUSD continues fall to new 2021 low

Stays below 50% midpoint of move up from 2020 low

The EURUSD fell sharply yesterday on the back of across the board dollar buying after the shore than expected CPI data. The the pair fell below the October and early November lows between 1.15125 and 1.15236. The price also fell into close below the 50% midpoint of the move up from the March 2020 low to the January 2021 high. That midpoint level came in at 1.14892. 

In trading today, the high price reached in the early Asian session traded at a high of 1.14869. That high stayed below the 50% midpoint level of 1.14892 (sellers leaning against the resistance level). The price low reached 1.14532. The current price is trading at 1.14574. 

Sellers stayed in firm control below the key resistance at the 50% midpoint. It would now take a move above that level (and stay above) to give the buyers a shot.  

The next target on the downside comes in at 1.1424 which was a swing that high going all the way back to June 10, 2020. 

The space between 1.1424 and the 50% retracement at 1.1489 is now the swing area that traders will use to either keep the bearish bias going (with a break below the low extreme opening the door for further downside) or a time for a corrective move higher (with a break back above the 50% retracement level).

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November 12, 2021 at 01:15AM
Greg Michalowski
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