February 9, 2023

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EURUSD trades to a new low for the year today, but bouncing modestly

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The 1.1601 to 1.1611 area eyed above as resistance 

The EURUSD traded to a new low for the year today with the pair continuing its run to the downside. The pair is working on its fifth day to the downside. The high five days ago came in at 1.17469. The high the low range over the five days is about 180 pips.

Yesterday the pair closed at 1.1597. The current price is trading at 1.1586 after a new year low at 1.1567. Staying in the red is bearish.

The 1.1601 to 1.1611 area eyed above as resistance 

Looking at the daily chart, the 1.16016 level was the low price going back to November 4. The low from September 25 came in at 1.16116. That area (between 1.16016 it 1.16116) will be eyed on a further corrective move higher. If the price cannot move above that area, the sellers remain firmly in control (as does the downward trend). A move above is the minimum for the buyers to feel some comfort.

On the downside, there is not a whole lot of support until the 50% retracement 1.14918. That level also corresponds with a swing high going back to March 2020.

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