EURUSD tests 200 hour MA, trend line and 50% retracement
Dollar heading back lower
Gundlach did say, he sees a lower dollar ahead....
The dollar is moving back lower vs the EURUSD (new highs for the pair), the USDJPY (new lows for the pair). The USDCHF corrected higher to the 100 hour MA, but turned back lower and trades toward the day lows again.
For the EURUSD, the pair is up testing a key area defined by the:
- 200 hour MA
- 50% retracement, and
- Downward sloping trend line
All come in at the 1.1355-57 area. The high just reached 1.13569.
When you have a bunch of technical levels at a confined area, it is a key barometer for bulls and bears. There will be sellers who lean against the area with hopes that resistance holds. However, if the price moves above, those sellers could easily turn around and buy. That's the importance of the technical area.
So, although the dollar is lower, sellers of the EURUSD may look to stick a small toe in the water with a close stop against the USD low level vs the EUR.