EURUSD higher on the day but not getting very far

The price did extend above the 38.2% retracement of the weeks trading range

The EURUSD is higher on the day but not getting very far.  

Recall from yesterday, the price moved initially to another new 2021 low and traded at the lowest level since July 10, 2020 (see daily chart above). However the price snapbacked higher, and in the process moved back above a broken trendline and the 61.8% retracement of the move up from the 2020 low near the 1.12876 level. Getting back below that level would be required to increase the bearish bias once again.

Drilling to the hourly chart below, the price has chopped higher since moving back above the 1.12876 level. The high price today extended above the 38.2% retracement of the move down from Monday's high to 1.13477 (the 38.2 is at 1.13389), but the price has since dipped back below that retracement level. On the topside, the 50% of the week's trading range at 1.13627, and the falling 100 hour moving average currently at 1.13691, remain upside targets that would need to be broken if the buyers are to take more control away from the sellers. Absent that in the correction is simply a modest plain-vanilla variety.

So overall although the market may have exhausted its run to the downside for now (428 pips over 15 days), the buyers need to show that they can take back more control by getting above lagging technical levels including the 100 hour moving average (to start).  Failure to do that, and a battle may have been won by the dip buyers, but the war is certainly still in the control of the sellers.
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November 19, 2021 at 02:24AM

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