Folexlive.com - Last week, the EURUSD high price corrected lower and in the process tested the 38.2% of the move up from the May 25th low.. That level comes in at 1.12105. The low price reached 1.12119.
Today, the Asian and London session low could only reached 1.1126 (two lows are within 1 pip of each other). The highs for the day reached a highest hourly high bar at 1.12676. That was the swing low from last Monday (June 8th). There are three hourly bars with 1 pip of each other. The current price is trading at 1.1248 - closer to the high but still nearly 20 pips off the highs.
On a move above the 1.12676 level, traders watch the swing low from the Asian session on Friday at 1.12753 as the next target to get to and through. Above that and traders will be targeting the 200 hour moving average at 1.12988 (call it 1.1300).
On the downside the low from last Tuesday came in at 1.12402. A move below that level would look toward the double bottom for today at 1.1226 and then target the 38.2% retracement 1.12105.
Although the price is below both its 200 and 100 hour moving averages, the correction off the high price reached last week of the recent run could only reached the 38.2% retracements. So there is a battle going on between buyers and sellers for the intermediate-term bias. If the sellers are to take more control, getting and staying below the 38.2% retracement is needed. If they can't, we should see a rebound above the 200 hour and 100 hour moving averages (at 1.12988 and 1.13188 respectively).
Right here (at 1.1248), traders could sell against the 1.12676 area with risk at the level or more conservatively above 1.12753.
Alternatively, a patient buy against the double bottom at 1.1226, would not want to see a move below the 38.2% retracement 1.12105.