US yields move higher in the short end
The EURUSD moved to a new high shortly after the the 11 AM fixing, but the pair has moved back down sharply as Powell helps to send the shorter end of the yield curve higher. Powell speaks on risks to inflation and how it should last longer than expected.
The 2 year yield is up 5.4 basis points. The 5 year yield is up 3.4 basis points.
The higher yields are also helping to hurt stocks with the Nasdaq leading the way. The Dow and S&P are also lower now after trading to new intraday all time highs.
For the EURUSD, the pair has moved back below the 100 hour MA (once again) at 1.16367. That MA has seen the price move below, and above, and below and back above and now back below over the last 24 hours. As such it is not doing such a great job as traders get chopped up.
On the wider view, the pair has a support area between 1.1616 to 1.16238, and resistance between 1.1666 to 1.16687.
Below the 100 hour MA tilts the bias lower but it will still take a move below the aforementioned support area to increase the bearish bias. The rising 200 hour MA will then be eyed at 1.16085.
