In The price of the EURUSD extended into the “extreme area”, and outside the older “red box” that confined trading from April 27 to May 23, sans the 2-3 days from the lower extreme (between 1.0348 and 1.04578).
The move below 1.04578 took the price down to a swing area at 1.04189, where momentum to the downside stalled (see green numbered circles in the chart above), the price has seen a rebound of the last hour or 2 of trading. The close resistance comes against the 1.04578 level (the low of the lower red box)..
If the sellers are able to keep a lid on the pair against the old “red box” area, the sellers would remain in full control with the downside targets remaining at 1.04189, 1.0388 (see red numbered circles in the chart above) and the extremes for the year between 1.0348 and 1.0353.
Move below the 2022 low opens the door for further downside probing and traders are to talk about reaching parity.
Conversely, a move above 1.04578, and traders will start to look toward 1.04709, 1.04820, and 1.04904 as the next targets to the upside.