Swing area on the daily comes in at 1.1506-29
The EURUSD is correcting higher today. Looking at the hourly chart below, the price moved to a new session low in the last hour. In the process, the price has moved toward a topside trend line at 1.15329. The high just reached 1.15263.
Drilling to the daily chart below, the 1.1506 to 1.1529 has been home to a number of swing levels (see yellow area in the chart below). Yesterday, that area was cracked in the last hour of trading and stumbled lower into the close.
Now with the price back in that yellow area, traders have a decision to make.
- Fail the break lower, and head back higher,or
- Find sellers here and push lower, keeping the recent trend lower in tact.
When a technical area is broken and the price corrects for a re-test, I will look for the aggressor (i.e. the sellers) to lean on the test. That lean can ultimately lead to stops on the failure (and even a reversal), but look for sellers on the test now. A move back below the 114.06 area will give the corrective sellers feedback on their sale.