EURUSD quietly waits. Support trend line tested in early NY trade
The yields are a touch lower in the Spain. In Italy, the yields are down a little more as the 10 year yield is now below 6%.
The EURUSD sits in a very narrow range (43 pips) as traders await the weekend fireworks from the Greek election. Central bankers have publically expressed that they are ready, willing and able to provide liquidity if and when it is need. Risk may be elevated. Volatility for now is not.
The price is currently testing the bottom trend line in the corrective channel on the hourly chart. The bottom trend line comes in at the 1.2603 currently (and moving higher). The low for the day is 1.26055 so far. The close from yesterday 1.26305 (bearish for the day). A break of the trend line will next target:
- 1.2586 – Lows and highs from yesterday
- 1.2567 is a better target. Equals the 38.2% of the move up this week
- 1.2543-45 – 50% of the move up and 100 hour MA
- 1.2535 – 200 hour MA
I expect a rotation down today but with market activity light, a holding or failure below the trend line would target 1.2623 (Jan 13 low), 1.2630 (close from yesterday), 1.2645 and 1.2666.