Forex Trading: EUR/USD Tests Support Level After Follow Through Selling Today

The EUR/USD continued to move lower over the weekend after Friday’s sharp declines.  As outlined in the FXDD commentary over the last week of so, the 100 day MA at the 1.3172 level, was a key level the market was testing and had to get through to move the bias to the downside.   When the pair finally broke, found the momentum and volume on the break and closed below this key level, the downside bias was set.

Now the pair is testing the 61.8% Fibonacci retracement target level at the 1.2945 level.  This is off the low set on Mar 4th at 1.2456 and the Mar 19th high of 1.3738 (13738 - 1.2456= 0.1282.  .01282*.618 = 0.792276.  1.3738-.0792276 = 1.2945).  The low for the day has been 1.2946 so far.   This is a key level and I would expect buyers against the level.   A break will likely continue the slide.

Since the break at the 1.3172 key 100 day MA level, the decline has moved 226 pips.

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