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The pair is entering into a swing area between 0.9342 and 0.9382. That swing area is defined by swing highs going back to September 2021 November 2021 January, March and April 2022 before the race to the upside in April and early May of this year. Also within the swing area sits a upward sloping trendline which currently cuts across near 0.9357.
The swing area - and trendline - should provide some cause for pause for the sellers as risk can be defined and limited against the area. Traders should look to lean against the support area, with a stop on a break below the 0.93425 level.
Having said that, with the price below the 200 day MA (and 50% retracement at 0.94103), it would now take a move back above the 200 day moving average at 0.942862 to give the buyers some comfort that the selling is potentially over. Absent that, the sellers hold the technical edge.
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