Approaches 100 hour MA. Is the tide turning more to the downside?
The EURUSD is extending to new lows (and the dollar overall is moving to new highs). The pair has moved bwlo the 1.26765-835 target and looks to target the 100 hour MA at 1.1665. The 38.2% retracement of the move up from the July 20 low comes in at the area too (1.1662).
Below that at the market will start to eye 1.1627 and 1.16157.
The 1.16157 level was the high from May 2016. The low this week (and since the break higher last week) stalled at 1.1612 - just below that key level.
The old ceiling turned floor, should remain support. However, if the dollar should start to turn around in general, that level will be a key barometer for bulls and bears. A break below is definitely more bearish.
What might support the dollar?
Let's face it, the earnings of multinationals are swimming in profits this quarter partly from the lower dollar. As a result, they may start to hedge some of their international exposure. The ECB is not going to get inflation if their currency continues to go higher too. So it may be time.
Technically, the failure to hold gains above the 1.1711 and 1.1735 level as contributed to a more bearish picture today. PS.The high in the NY session reached 1.17058 - below that key 1.1711 level. So sellers are staying in control.
