EURUSD moves toward the 1.2131 midpoint as stocks recover, but not so fast….

The EURUSD moved toward the 1.2131 area. This is the 50% of the EURUSD lifetime range and I think will be a key level this week for bullish/bearish bias. Stay below = bearish. Move above = bullish. The high for the day is 1.21375. The EURUSD could not make new lows on the back of lower stock market move at the opening. With the correction higher in the stock market, the EURUSD followed. It seems the EURUSD is being influenced by the flows in the stocks (at least for now). Can that continue?

Looking at the S&P Index, the price moved back below the 100 day MA today at the 1359.54. The 50 day MA comes in at the 1332.95 and is the next key target. The 200 day MA comes in at 1314.32. These levels will be of importance this week and if stocks are able to stay below the 100 day MA and move below the 50 and 200 day MA, this should pressure the EURUSD and the risk pairs (like AUDUSD).