EURUSD edged lower on weaker PMI data outside Europe. The price fell below the 38.2% retracement at 1.1106 en route to a low price of 1.1064. This low stopped in the swing area on the 4-hour chart between 1.1062 and 1.1075 and ahead of the 50% midpoint and 100-bar moving average of the 4-hour chart, which is centered at 1.1054. To increase the bearish bias, there is a need to move forward below the swing area and intermediate/moving average target at 1.1054.

The near term risk for sellers would now be the breached 38.2% retracement area (and Friday’s low) at 1.1106. Now, it is true that the price moved higher from the load today and traded at 1.1108, but the price quickly turned back to the downside. It would take another move above the 38.2% retracement with momentum to increase the bullish bias (and negate the bearish price action).

Until then, vendors have more control over the support levels that are likely to be tested.

EURUSD is testing the swing area. More support at 1.1054

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