EURUSD is now lower on the day after failing above the 61.8% retracement

The EURUSD surged higher this week, rallying from a Monday low of 1.03879 and closing higher for three consecutive days. The momentum extended into Thursday, with the pair reaching an intraday high of 1.0853, marking a 465-pip gain over the past few sessions—a strong move within a short timeframe.

From a technical perspective, the rally pushed the price well above key levels, including the

• 200-day moving average (1.07257),a
• Swing area between 1.07609 and 1.07767, and the
• The 61.8% retracement of the prior move at 1.08174. However, after holding above the 61.8% level for about three hours, bullish momentum faded, and the pair dipped back below this retracement level. The past few hours have seen further declines, with the price retreating into the previously broken swing area.

A key support test now looms at the lower boundary of the swing area (1.07609). A break below this level would signal a shift in bias back to the downside. If sellers gain control and push the pair further down, focus will shift toward the 200-day moving average at 1.07257. A confirmed break below this long-term indicator could trigger more aggressive selling, as traders may view the recent breakout above the 200-day MA—the first since November 6—as a failed attempt to establish a sustained uptrend.

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