The EURUSD fell below the swing lows from April 14 at 1.07568 and the swing low from last week’s trading at 1.07604. The break below those levels (see red numbered circles in the chart above) sent the price down to a new low for the year and lowest level since March 23, 2020 at 1.0706.
The momentum lower faded ahead of the 1.0700 level, and has been trading more up and down over the last seven or so trading hours. However, of technical note is that the corrective high price off of the low stalled at 1.07576 – between the recent low levels from the past two trading weeks (between 1.07568 and 1.07604).
That is a key borderline area, that if the price is able to stay below going forward, the sellers would remain more in control.
The current price is trading down at 1.0727 away from that swing area, but in the middle of the lower extreme area down to 1.0706. Watch the 1.07182 level as a potential interim intraday support level. It was the swing low since the bottom today.
If the buyers are to make a play, holding that support level and moving above the 1.07604 level would be needed to give buyers some comfort. Absent that, and the sellers have the strongest hand.
What are the next key targets on the downside?
Looking at the daily chart below, the March 2020 low price comes in at 1.06347. That level represents the lowest level going back to April 2017. The April 23, 2020 low price came in at 1.07265. That is exactly where the price is trading at the moment. Will below that level and show more momentum, would give sellers even more comfort (and make the buyers nervous).