The EURUSD returned to negative territory after attempting to extend into positive territory for the 1st time in 5 trading days.
Looking at the hourly chart, the high price has extended into a swing zone between 0.9733 and 0.97506. Monday’s high price reached just above the upper level (high price reached 0.9752). The high price reached 0.97374 today before reversing lower. Yesterday’s closing price was 0.97037. Current prices are moving back below the 0.9700 level, currently trading at 0.9697.
Conversely, traders are watching the 0.9662 to 0.96836 area for potential support. If buyers want to make a play, maintaining that level would be where they need to re-enter.
Overall, however, trading in positive territory for the day gave buyers a chance. They couldn’t get past the next higher target. As a result, the shot missed. Buyers failed.
Sellers retain more control.
PS, the 0.9662 level was a swing lower zone dating back to a period between June and October 2002. Moving below also increases the bearish bias from a longer term outlook.