This pair is reversing the drop lower after the ECB announcement. The pair has traded above 0.88000 yesterday and was using its 50 period 4 hour moving averages as support in an attempt to eke out gains. This market has been in a sideways range for many months so traders are watching for a breakout above 0.90000 with this week’s price action restoring their hopes. The retracement this morning has gotten to 0.87988, close to the 0.88000 target. A break higher hopes to test the recent high at 0.88364 and then push to the falling red trend line at 0.89000. A break above this line would see 0.89674 tested with support built at the 0.89000 zone.
Support can be seen on the chart at the moving averages around 0.87900 and 0.87700. Further support is located at 0.87574 and the low of last week at 0.87162 followed by the 0.87000 level. A move under the end of May lows can target 0.86900 followed by 0.86671 and the important swing low at 0.86200. From there buyers would look to enter the market as far down as 0.85700 but a loss of 0.85500 may result in a shakeout of positions and a drive to 0.84000 and beyond.
