EURUSD breaks lower and moves away from the 100/200 hourly moving averages
Admittedly, EURUSD is trading near the middle of the range between 1.0550 and 1.0743. The range has been in effect for the last 6 trading days or so.
When the market moves up and down, moving averages move in the middle of the range.
Looking at the hourly chart, the 100 and 200 hour moving averages are located at 1.06955 and 1.06988 respectively. The bottom of these two moving averages was holding support in early European/US trading. This level has now been broken and we are seeing increasing momentum to the downside.
The next target is the bottom end of the top and bottom. There is a swing zone dating back to mid-April between 1.06529 and 1.06778.
With the break down, the moving averages mentioned above have now become resistance and a risk-defining level for sellers looking for more downside.