EURUSD trades higher after last week fall

FX:EURUSD   Euro / U.S. Dollar
The EURUSD moved lower yesterday and in the process retested a swing area going back to 2020.
That swing area is above the extremes from that time. However, it is worthy of consideration ahead of the swing lows in 2020.
The area comes between 1.07642 and 1.0777 (see red numbered circles in the chart above). The low from last week did move briefly below that level but rebounded back to the upside. Yesterday the price of the EURUSD stalled within the swing area. Today, the swing low for the day dipped below an intraday low of 1.07605. However, momentum could not reach the low price from last week at 1.07568, and selling dried up. The price has since moved higher.

Drilling at the hourly chart below, the dips below the swing area on the daily chart, have been quick with limited momentum. Today's bounce has now seen the price of the EURUSD move back toward the falling 100-hour MA, along with swing highs from Friday and Monday at 1.08207.

What next?

Although there is a dip for buyers near the aforementioned support levels in the EURUSD (down to 1.0764), the price rebound still needs to extend above the 1.08207 level to give the buyers more confidence (100-hour moving average and swing highs).

A move above the 100-hour moving average would be Step 1 in a corrective probing move to the upside. Step 2 would be to extend above the falling 200-hour moving average of 1.08455 (green line in the chart above).

Absent those technical breaks, the sellers have the strongest hand. The bias would remain tilted more to the downside.
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