EURUSD dips to new lows, testing key support level. What next as we head into new week?

The EURUSD is trading at new session lows and lows for the week. In the process, the pair is testing the high of a swing area near 1.0847 and the 61.8% of the move up from the February low to the March high at 1.08036. The swing area extends down to 1.07955 (see red numbered circles). A move below that area – and staying below – opens the door to more downside probing.

If buyers can support the pair here, it would take a move back above the 50% of the move up from the February low at 1.08374. At that same level is the 200-day MA increasing the levels importance. Sellers today moved away from that area. I would guess that if the price does move back above that level, sellers may look to shift back to buyers with the 100-day MA as the next key target.

To get your arms wrapped around these levels, watch the video above.

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