EURUSD reaches 38.2% retracement but fails this week, sellers take control with more work.

The EURUSD on Monday of this week reached up to test the 38.2% retracement of the move down from the July high to the October low near 1.07642. A high price on Monday reached 1.0756 just 8 pips short of that key target.

After a trend-like move (like the market in the EURUSD saw from July to October to the downside), on the correction move back higher (like we saw conclude on Monday), traders need to get back above the 38.2% retracement. Failure to do that and the buyers are not winning. The sellers are more in control.

So the peak against the 38.2% retracement gave sellers the opportunity to push lower and they did this week.

The move lower – which bottomed today – saw the pair test its 200-hour moving average (green line in the chart below) on the dip. Buyers have been leaning against that moving average today. He remains a barometer in the short term for either increased bearish bias on a break below, or increased bullish bias if the level can hold. Having said that, on the topside today the following 100 hour moving average – currently at 1.0693 – has held resistance.