EURUSD is testing a swing zone between 1.0720 and 1.0735
EURUSD fell below the swing zone on Friday between 1.0720 and 1.0735. The selling intensified, and the low price moved towards 1.0666 before bouncing back at Friday’s close.
Today, the initial move was to the downside in the Asian session, but the price has since bounced back higher and back towards the swing zone mentioned above. If the process moves above this level, I expect buying to intensify when the break down fails.
The midpoint is 50% of the range since the April low at 1.07579, where this will be the next upside target.
Conversely, if sellers hold on to this level (which has been the case so far), a move back towards downside targets including 1.0673, 1.0649 and further lows down to 1.0600 will be the targets for today – and for the trading week.
Sellers added to their play on the downside on Friday on a break below the swing zone. Can they keep this ‘play’ going this week?
