EURUSD stretches to the lows of the 2-week trading range and broken 61.8% retracement | Forexlive

The EURUSD has dropped to a new low for the day, testing key support at the broken 61.8% retracement of the September high to last week’s low at 1.08174, along with last week’s low at 1.08044. A break below the 1.0804–1.0817 zone would likely discourage buyers while giving sellers—who previously sold near the 1.0936–1.0954 resistance zone—greater confidence.

If the pair moves lower, traders will target the next swing area between 1.0776 to 1.0760, followed by the 100-bar MA (4-hour) at 1.0743 and the 200-day MA at 1.0728. A drop below all these levels would strengthen the bearish bias and shift control further to sellers.

Conversly, this support zone (down to 1.08044 also presents a risk-defined buying opportunity, as seen late last week when buyers stepped in. Risk can be defined and limited against the level for buyers looking to buy a dip (stop below).

On the upside, a recovery above yesterday’s low at 1.0859 would boost buyer confidence. Further resistance comes at the 200-hour MA (1.0888) and 100-hour MA (1.0902 – chart below)), which would need to be cleared for buyers to regain momentum.