EURUSD falls to support and snaps back higher

Technical Analysis

Author: Greg Michalowski | eurusd

Support near 1.1700 holds

The EURUSD initially moved to the downside (stronger dollar) but after holding support near the 1.1700 to 1.1705 area (the low reached 1.17026), sellers turned the buyers and the price quickly snapback higher.

Support near 1.1700 holds_
The pair is currently back above its 100 hour moving average at 1.17352 trading at 1.1742 as I type. The high price extended to 1.17548 so far. Further momentum would have the pair targeting the 200 hour moving average 1.17708. Above that is the 38.2% retracement 1.17794.

Should the price move back below the 100 hour moving average, be aware for the potential for an unravel to the downside on disappointment on the break higher.  Traders can get offsides, liquidity conditions are lower, and surprise comments from Powell can lead to volatile market conditions. For now the buyers are still in control.

Some key levels as Powell begins his press conference:
  • Dow up 451 points at 34371.41
  • S&P up 53.79 points at 4407.97
  • NASDAQ index up 175.07 points  14921.46
  • crude oil $72.09
  • bitcoin $43,731
  • Gold $1785.29
  • Silver $23.07
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