EURUSD trades in a narrow range after making new 2021 lows

Still below the 50% midpoint

The EURUSD is trading in a narrow 20 pip trading range as the week worked its way toward a close. This week saw the pair move higher on Monday and Tuesday into resistance between 1.1601 and 1.1611. On Wednesday the price moved sharply lower in response to the dollar buying after the CPI data, and in the process, cracked below the 50% midpoint of the move up from the March 2020 trading low at 1.14892. During yesterday's trade the high price stayed below that midpoint level keeping the bears in control. The price closed near it's lows at 1.1442.

In trading today, a new 2021 year low was reached for the third day in a row at 1.14354, but the price has since moved higher and trades at 1.1449, up on the day and near it's high at 1.14554.

Looking at the daily chart, the next target hours looking toward was at 1.1424. The low today at 1.14354 is still short of that target. On the topside the 50% midpoint remains a short term risk/bias defining level for buyers and sellers (at 1.14892). Stay below the level is more bearish. The 61.8% retracement 1.12876 cannot be ruled out as a downside target on further dollar buying.

Move above the 50% level and there could be additional upside probing with the 1.1512 to 1.15236 area as the next target (swing lows from October and earlier in November) above that and traders would start to look toward the 1.1601 to 1.1611 as targets on the daily chart.

Drilling down to the 5 minute chart below, there was a number of swing lows between 1.1453 and 1.14553 during yesterday's trading (floor). Today, that area has slowed the rally's (ceiling).

The 100 and 200 bar moving averages has seen price action above and below today as the market consolidates the sharp declines from Wednesday's and Thursday's trade.

The holding of that resistance level increases the areas importance going forward. Move above should see further upside probing. Stay below and the sellers remain in firm control.

On a move above the 50% midpoint remains the key target on the topside.

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Forex Trading For Beginners 2021

Friday 12 November 2021