Key swing areas could make selling tough
The price action has been up and down of late (like other pairs). So selling today, may lead to buying tomorrow.
Looking at the hourly chart, the holding of the 0.7259-62 area (upper yellow area) in the NY session (green circle 4), was a key hold. That area included:
- The 100 hour MA,
- Some swing levels going back to March 16th (blue numbered circles), and
- A downward sloping trend line (green circles in the chart above).
Later the 38.2% was broken at 0.7254. The 200 hour MA at 0.7235 and the 50% at 0.7227 were also broken.
The run lower is stalling near the 0.72000 area (lower yellow area). If the price is to continue down, that area needs to be busted.
Taking a broader look at the daily chart, the 0.7175-83 is another key area to get and stay below.
- The swing low in February reached 0.7175
- The swing low from March 1 reached 0.7185
- The 38.2% of the move up from the November low comes in at 0.71835
- The 200 day MA is at 0.71805
So some support at the 0.7200 area, but even more support can be targeted at 0.7175-83.