100 hour moving average at 1.15703
The EURUSD traded above and below its 200 hour moving average during trading yesterday, closing just below the level.
IN the Asian session today, the price tried to push to the downside but could not get back down to the lower 100 hour moving average (blue line currently at 1.15703). The low only reached 1.5765 before moving back to the upside.
That move higher was able to extend above the 200 hour moving average with momentum. The 50% midpoint of the move down from the high from October 28 was broken at 1.16021. However, sellers lined up near another recent swing high level from last week just above the midpoint level at 1.16067.
The move back to the downside traded above and below the 200 hour moving average (at 1.1587). More recently over the last few hours, there has been a bigger push to the downside that has seen the price test the 100 hour moving average at 1.15703.
The current price is trading at 1.1577. That puts the pair comfortably between the two major moving averages. Traders are unsure and taking a breather and is awaiting the next shove (above or below one of the moving average levels).
The PPI has not led to much market reaction despite the elevated level. Traders already know that costs are driving up producer prices. Manufacturers are passing on that costs where they can. The question going forward is will that inflationary pressure continue, or is it transitory as most Fed officials expect. It's too early to tell but the markets are leaning in the direction of transitory at least for now (or at least comfortable with the taper and potentially modest tightening later in 2022).
US yields remain lower with the 10 year yield down -3.2 basis points. Later at 1 PM ET the U.S. Treasury will auction off 30 and billion dollars of new 10 year notes. The current yield is at 1.465%.
