Breaks below trend line again....
The EURUSD has been helped lower by technicals and now better than expected US ISM data. Technically, the price has moved below the lower trend line at 1.0852. It would be nice to stay below that line now in the current hourly bar.
The low extended to 1.0838. The range is now 55 pips - still light. The market price action today is skittish/choppy. That means traders are short term oriented. Liquidity conditions are also likely less, contributing to the more choppy price action.
The price has already back above the 1.0852 line typed above (traded at 1.0855). IF the sellers are to keep the pressure on, I would expect that traders would like to see the lows from earlier remain as a ceiling level now. The low at 1.0838 is great but at 55 pips, the shorts are likely expecting a bit more.
Looking at the daily chart, going back in time the price has traded above the 1.0777 area for most of the last 10 months. IN November and again at the beginning of January, there were moved below this lowest of swing lows. So as far as targets go, the pair is near the entry point where there is a lot of congestion from prior swing lows (see chart below).
