The upside breakout extended the range for the week, but only temporarily.
The day started with the EURUSD range at 78 pips for the calendar week. If this range were maintained, it would be the lowest of the year. Chairman Powell comments that the Fed would follow an average inflation pattern over time, pushing the dollar lower and the EURUSD range extended to around 130 pips for the week on the higher peak.
However, these gains have been eroded. Price is now trading near daily lows and testing a swing area between 1.1797 and 1.1801 in volatile trading. Price also fell back below key resistance at the 200 hour moving average and previous weekly oscillating highs near 1.18462 to 1.18495. The price is also pulled below the 100-hour moving average of 1.18123. Buyers turned to sellers. As I type we are trading at new session lows.
The next key target arrives in the swing zone of 1.1779 to 1.17837 (see green numbered circles). A break below this level should open bearish momentum with last week’s low of 1.17533 as the next target.