Choppy price action
The EURUSD dipped to a new cycle low (lowest level since November 4) – trading to the lowest level for the month and the year. The price low reached 1.17035. The rebound high has reached 1.17475. The range of 44 pips so far is on the light side compared to the 22 day average of 72 pips.
Looking at the daily chart, the price rebounded back above the broken trend line at 1.1737, but has since reversed back below that level. The price low is also above the 38.2% retracement of the move up from the February 2020 swing low at 1.16947. That is the next key target on the downside. A break below that level would next target the November 2020 low price of 1.1602.
Drilling to the hourly chart below, the lows both yesterday and today dipped below the lower channel trendline. Each could not sustain downside momentum. The key upside target area includes the falling 100 hour moving average at 1.17627, the topside channel trendline at the same level and the swing lows from March 25 and March 29 near 1.17611.
Although the price is higher (the pair has been down in the 5 of the last 6 trading days), getting back above the 1.1761 – 63 area is needed to give the dip buyers more confidence.