The EURUSD is trading at post FOMC meeting minutes lows. It has also tested the NY session low at the 1.2523 level (see 5 minute chart below). It was also a low from the London morning session. You cannot help but notice that level if you look at a short term intraday chart.
The EURUSD has tested the NY session lows now
Below those levels is the 100 hour MA(blue line in the chart below) which currently comes in at the 1.24973 level. The 1.2497-08 is a support area for the pair from prior lows and highs (see blue circles in the chart below). Like the 1.2523 lows, aA test of this area should also give cause for pause.
The EURUSD is down after the initial spike but has the 1.2497-08 as the next key support target.
The volatility remains elevated for the pair. Is the 1.2577 resistance area from above, in the rear-view mirror now? A move back below the 1.22523 and then the 1.2497 levels will help to confirm that story> What we can say about the 1.2577 level is it was broken. It was tested hard on the correction. The price is now back down. There if more work to be done by sellers on the topside but buyers are less in control.
Tomorrow, is the hurdle from the CPI and the Initial Claims at 8;30 AM ET. Can the CPI keep the dollar higher or will a benign number be priced in. The Philly Fed Index and Existing Home sales are due at 10 AM ET. Last month this Philly index came down to 20.7 from 22.5 in September and 28.0 in August. The Existing Home sales surprised to the upside (highest level going back to September 2013). Initial claims did move higher last week but the number remains below the 300K level. The expectations is for a 284K.
