March 26, 2023

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EURUSD finds the sellers near overhead resistance target area

2 min read

The 1.1751 to 1.1756 area stalls the rally in trading today

After the CPI data today, the EURUSD raced up and got close to a swing area between 1.1751 1.17566. The high price reached 1.17488 and rotated back down (see earlier post here).  The low stalled just ahead of the earlier Asian session high for the day at 1.17248. Holding that level gave the buyers the confidence to push back higher into the New York afternoon.
The 1.1751 to 1.1756 area stalls the rally in trading today

This time, the high was able to extend into the swing area, topping out  at 1.1753.  However, sellers leaned again, and the price has rotated lower. The current price is at 1.17396.  

What do we know from the price action today?

The New York session left a lower extreme between 1.17053 and 1.17248. The absolute low for the day at 1.17053 stalled just above the 2021 low for the year at 1.17035. The higher support level at 1.17248 corresponded with swing levels from yesterday and today. Get below the 1.17248 and stay below would have traders looking once again toward the low from 2021

On the topside, the swing area between 1.1751 and 1.17566, along with the falling 100 hour MA is key resistance.  

In between those extremes is where the buyers and sellers will be battling it out in the short term. 

Overall I would characterize the day as a corrective day (of the recent run to the downside) but with the sellers remaining more in control below the 100 hour moving average and the swing area. 

That does not mean there will be dip buyers like there were ahead of the 1.17248 level or the 1.17035 low, but the last five or six days has seen sellers, and the price rise was relatively modest into resistance today. 

As a result, until some of the technical levels can be broken on the topside, the sellers remain more in control. 

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