New low going back to April 5
The EURUSD continues to chop with a bearish bias in trading today. Although the bias is tilted to the downside, dip buyers have also benefitted as buyers have not been shy to lean against extreme support levels, and rip the price higher. There was a bounce yesterday, and another after new lows were reached but a lower trend line held.
Looking at the hourly chart above, the price highs today squeaked above the 1.1781 area (see green numbered circles) by a pip of two in the the Asian and London session, but found sellers against the risk defining level (the level was first a swing low going back to July 7).
At the lows today, the pair did extend below the low from yesterday (there are lower lows on Monday, Tuesday and Wednesday) reaching a new low going back to April 5. However, that low was only by about 4 pips. A lower downward sloping trend line, stalled the fall (dip buyers leaned) and the price rebounded.
Staying below the 1.1781 and having the price also below the 100 hour MA above at 1.17942, tilts the trading bias to the downside. Sellers leaning against the 1.1781 level could use that level as a close risk level with a break above the 100 hour MA a more conservative stop.
On the downside, the pair’s bearish bias would get stronger on a move below 1.17632 and then the 1.1750 area where the low for the day and the lower trend line cuts across (see red numbered circles).
Up and down chop, but I give the bias to the bears still. Watch support nevertheless. It has worked yesterday and again today.