S&P down 1.1%
The EURUSD has moved higher after holding support near the 38.2% and the corrective low after ECB's decision last week (at 1.0803 and 1.0788 respectively - the low reached 1.0795 - see prior post).
The move back higher DID NOT find sellers against the 100 bar MA on the 5 minute chart nor against the 38.2-50% of the move down. So seller failed their test to stop the buyers at resistance. The high price has moved to 1.0859. Remember the 1.0863 level (see prior post). That seems to have stalled the move back higher.
What now? After the rally last week the dollar strength idea was given a swift kick in the mouth. The buying at the dip was a key tell. Shorts may still be out there looking for the get out of jail free card. They would have loved a move back below the 1.0788 level, but it was not meant to be. A move back above the 1.0863 is still needed. There should be support at 1.0828 now.
In other markets. US stocks are getting hammered with the S&P down 1.1%. Oil prices are also getting hurt with WTI down nearly 5% now. US bonds are rallying and trading at low yield levels of the day. GBPUSD has not down anything today in the NY session. The USDJPY has moved lower by above 25 pips in the NY session. USDCAD kicked higher. AUDUSD lower and NZDUSD also lower as commodities get hammered. By the way, Gold is down 1% in trading too today.
