Bears remain more in control
The EURUSD is near unchanged levels on the day (closed at 1.1296/trades at 1.1298 currently). The action has been wild with a move up toward 1.1400 (1.13975 high) followed by a plunge to 1.12675. Just to cause trouble the low took out the prior low and the low from from Monday (low for the week) by 6 pips, and then corrected higher. So for the day, the high for the week was extended by 10 pips (from 1.1387 to 1.1397) and the low was extended by 6 pips (1.1267 vs Monday low at 1.1273). For the week, the range is now 130 pips - still on the low side.
So what does the correction higher tell us?
Looking at the 5-minute chart above, the price moved to a high of 1.1310 which was the swing high from earlier in the day. The price also stayed below the 100 bar MA at 1.13124 and the 100 and 200 hour MAs at 1.1321 and 1.13256 respectively. That keeps the sellers more in control. Stay below and a further extension lower will be explored (if not today, then tomorrow). On the downside, the price will need to get back below those lows.
What we have seen is that the volatility from the Draghi press conference, has now turned to cautious trading.
