EURUSD tests broken swing area between 1.0720 and 1.0735

The EURUSD fell below a swing area on Friday between 1.0720 and 1.0735. Selling intensified, and the price low moved down toward 1.0666 before bouncing back into the Friday close.

Today, the initial move was to the downside in the Asian session, but the price has since bounced higher and back toward the aforementioned swing area. If the process should move above that level I would expect that buying intensifies on the failure of the break lower.

The 50% midpoint of the range since the April low comes in at 1.07579, in that would be the next upside target.

Conversely, if sellers do lean against this level (and so far they are), a rotation back toward downside targets including 1.0673, 1.0649, and other lows down to 1.0600 would be the targets today – and for the trading week.

The sellers added to their play to the downside on Friday on the break below the swing area. Can they keep that “play” going this week?

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