The EURUSD starts the new day with the bears still in control

The EURUSD fell to new low in 2024 and low going back to October 2023 in trading yesterday. The low price reached to 1.0495. That low got within 12 pips of the low swing area target at 1.0483 (see red circles on the chart above).

The price rebounded into the close with the pair moving to a high of 1.0582. Recall from earlier this week on Tuesday, the low reached 1.0594 after breaking to a new 2024 low at 1.06005 (going back to August). That break failed. Then on Wednesday, a new low was made in the European session at 1.0592 and again the break failed.

Later in the day, both those level were broken and stayed broken on the corrective move higher (see the chart below). That holding under the 1.0592-94 area increases the area’s importance going forward.

It would now take a move above 1.0594 – and then the 1.06005 level (the August low) – to give the buyers some added confidence today and going forward. Absent that, and the sellers are still in firm control.

After falling 1.05% last week, the EURUSD is down another 1.6% this week. The price is trading at the lowest level of the year and going to October 2023. The next downside target is at 1.0483. Move below that level and traders will be targeting the 2023 low at 1.0448 and then the 50% of the EURUSD range from the 2022 low to the 2023 high. That level comes in at 1.04053.

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EURUSD Market Update

The EUR/USD currency pair reached a new low in 2024, dropping to 1.0495, nearing the target low swing area of 1.0483.

Key Points:

• The pair rebounded to 1.0582 after touching a new 2024 low at 1.0495 on Thursday

• The corrective high moved toward the previous swing lows from earlier this week at 1.0592-94. That area is a key target – along with the August low at 1.06005 – that needs to be broken to give the buyers more confidence

• Sellers remain in control without a break above these levels.

• The currency pair is down 1.6% this week and 1.05% last week.

• Next downside targets: 1.0483, 1.0448 (2023 low), and 1.04053 (50% of 2022-2023 range).

Current Market Status:

• Lowest level since October 2023.

• Sellers in firm control.

This article was written by Greg Michalowski at www.forexlive.com.