EURUSD bounces back higher on Powell comments

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The 38.2% and swing area between 0.9899 to 0.9913 stalled the corrective rally

EURUSD corrects back to swing area.

The EURUSD has moved back above the swing low from September 6 at 0.98633. Also moved above the swing area between 0.9874 and 0.9877. Those levels represented the swing lows from September 5 and September 7 book ending the September 6 old low. That area is now reestablished as support in the short-term. If the buyers can stay above that level, the break to the low will look somewhat exhaustive at least in the short-term.

Having said that, the retracement back higher has seen the price move to the 38.2% retracement of the move down from the week's high down to the low price reached today near 0.99028. That retracement level is also between a swing area between 0.9899 and 0.9813.

Technically getting above the 38.2% retracement and the 0.9913 level is the next hurdle to get to and through. Above that is the 50% midpoint of the move down this week and 0.99309, and above that is the 0.99515 level which I've earmarked as a level of importance. That level held support (for the most part) over the previous 5 trading days before breaking lower today on the back of the Russian news. Remember the 0.99515 level was the July 14 old low for the year and started a corrective move to the upside at that time.

Getting back above 0.99515 would certainly start to increase the bias in the short-term even more.

For now, the correction is to the 38.2% retracement. There is work to do if the buyers are to take more control, but there is also reestablish support at old lows that traders can lean against.

Trading analysis offered by Flex EA.
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