EURUSD moves closer to 2022 low but holds the line so far

Looking at the hourly chart, the price has seen a lot of up and down price action today. The high for the day reach 1.08339. So the 36 pip trading range is well below what is normal. The last 22 trading days has averaged 82 pips (ranges only 44% of the normal month long trading range).

So there is room to roam.

Traders on a break to the downside could expect more momentum in that direction (it is a new low for the year after all). However, the same could be said to the upside as the market “spring” tightens near the low as buyers and sellers battle it out in the narrow trading range.

On the new high, further upside momentum would have traders looking toward the falling 100 hour moving average at 1.0869 currently (blue line).

Recall from yesterday, the buyer had their shot above the 100 hour MA (again) and failed. Buyers turned quickly to sellers.

Taking a look at the weekly chart below, the recent cycle low from 2020 came in at 106.347. There were a number of swing lows between 107.667 and 1.0804 ahead of the extreme lows (see red numbered circles and yellow area on the weekly chart below).