Forex technical analysis: EURUSD moves to a lower low for August and bounces

3rd straight day of lower lows for August

On Tueday, the price took out the August 9th low by 2 pips and bounced

On Wednesday, the price took out the Tuesday low by 6 pips and bounced

Today, the price took out the low from Wednesday by nearly 19 pips and bounced.

The subsequent low (after reaching bottom on the hourly chart) was above the Wednesday low. That was the pattern yesterday too. As Mike put it in an earlier post, "Dip demand for Euro evident"

Now for today, the EURUSD has had a pretty good run back to the downside. It really got started technically on the break back below the:

200 week MA at 1.1767
100 hour MA at 1.1767
200 hour MA at 1.1767

With all three MAs at the same level, the line was a barometer for bullish above and bearish below. The price moved below in the late Asian session and buyers turned to sellers. That selling was steady in the the European session until that ubiquitous dip demand showed up.

What now?

The pair has corrected about 38.2% of the move lower to 1.1713 (the 38.2% is at 1.17104) . For me, on the downside, getting and staying below the 1.1680 low from yesterday will be eyed for more bearish clues. Looking at the 5-minute chart below, you can see the bounce off that level on the last dip. So it is not going to be that easy.

On the topside, I don't like moves above the 50% of the days range if the price trended. That comes in at 1.7255.