EURUSD is trying to push higher after a return to the 2022 lower extreme zone between 1.04578 and 1.03485. The low price reached 1.0396 today which was below the next swing zone target at 1.0388. After breaking through another swing level target at 1.04189, the buyers have started to push against this level and the level is providing a base of support.
The upward move may have extended into the old “red box” with the low of that box at 1.04578 (see chart above). The first try above this zone pulled back after hitting another swing zone between 1.04821 and 1.04904. After falling towards the 1.04189 level and finding buyers, the price is currently back above the 1.04578 level, trading at 1.0466.
There is an attempt to regain control. Buyers would now like to see price stay above 1.04578 and push above the 1.0482 – 1.04904 swing zone. If this can be done, the short-term bias would gain a bit more traction after the steep declines seen over the past 3 trading days.
Conversely, if the bullish momentum starts to fade, traders hoping for further bullish momentum would not want to see a return below the 1.04189 level.
The last 3 trading days have seen the price drop from a high of 1.0773 to a low today at 1.03963. It’s a move above 377 pips in a relatively short period of time. The price entered the lower extreme and was unable to reach the lower targets, including the low of the year at 1.03485. So there is hope for a corrective movement.
That said, there’s still a lot of work to be done to get dip shoppers back in control, and they’re certainly not out of the proverbial woods yet. They might see a few later, but it’s still dark in there.