EURUSD trades back below the 100 day MA
The EURUSD moved above the 100 day MA and 50% of the move up from the March low at 1.0805 area. Recall from yesterday, after skimming along the 100 day MA, the price fell below the level in early NY trading and extended to a low of 1.0762. Today, in the Asian session, the price dipped to a low of 1.07592 – but the momentum faded. The failure to push lower on the break started a rebound.
The extension back above the 100-day moving average/50% area should have solicited some buying interest, and it did. The price extended to 1.0823 but fell short of the falling 100-hour moving average currently at 1.08359. Looking back over time, the price has been using that 100-hour moving average on rallies as selling levels. Today the price could only get within 12 pips of it before rotating back to the downside.
The failure above the 100-day moving average (it is at 1.0807 today BTW) and retracement level (at 1.0805) have traders pushing back down below the 1.0800 level. The current price trades at 1.0794. The failure also reestablishes the moving average/retracement level as resistance. Sellers have more control once again.
The caveat is that it’s Friday. We do have Fed Chair Powell scheduled to speak at 11 AM ET, but he will likely to continue the tilt toward fears of inflation. The debt ceiling could also lead to volatility.
US yields are moving higher which is giving the dollar a little bit of a boost (lower EURUSD). The 2-year yield is up 5.2 basis points of 4.321%. The 10-year is up 5.3 basis points to 3.701%