Buyers gave up on the run above the 100 day MA
As per an earlier post
, the EURUSD buyers failed twice on breaks of the 100 day MA (at 1.12739). Getting scorned once is bad. Getting scorned twice is even worse. You don’t forget that.
I wrote in an earlier post
to that idea AFTER the 2nd break above 100 day MA (and 50% retracement near the level):
Traders don’t like getting whipped around twice on key breaks, and the break of the 100 day MA and 50% are key breaks. Therefore, I would expect stops (on a re-break) below the 1.1274-78.
So the scorned buyers above the 100 day MA, turned around, sold against the 100 day MA at 1.1274, and have now pushed to even lower lows for the day now (at 1.12316 so far). The pair is now approaching the next target at the low from yesterday at 1.12254.
Risk for seller looking for more downside comes in at 1.1250-52 now (old floor today – see green numbered circles).
Other downside targets on more selling will look toward the 50% midpoint at 1.12106 and then the 100 hour MA at 1.1204 (and rising).
The buyers were scorned on the breaks of the 100 day MA. They won’t soon forget that treatment and they showed it in the price action today.
Source: forex live