The EURUSD remains in a shallow downward channel this week. The price tested the 100 hour MA (blue line in the chart below) and trendline earlier today - providing a low risk trading opportunity (see hourly chart below). The pair has resumed the move lower and looks to target the 1.3040 level where the bottom of the channel currently comes in.
Taking a look at the daily chart below, the price has moved back below the key 200 day MA (green line in the chart below) currently at the 1.3091 area and also has moved below the 50% retracement of the move up from the 2010 low at 1.1876 to the high reached in November at 1.4281. That level comes in at 1.30785. Staying below this level today should keep the pressure on the pair and would target in the medium term a testing of the 1.2968 low for November and possibly the 61.8% retracement at the 1.2795 level.
For today, a move back above the 1.30785 level (50%) should solicit some holiday type profit taking by the day traders, with a move above the 200 day moving average, taking all the wind out of the bears sails.
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