EURUSD dips down to test the 100 day moving average
The EURUSD has moved down and taken the final step toward the key 100 day MA level comes in at 1.19567. The low price just reached 1.19567.
Along the way lower today, the price also moved below the 50% retracement of the move up from the November 2020 low at 1.19752. That may be eyed as close resistance for traders looking for the key break below the 100 day MA.
The price of the EURUSD has not traded below the 100 day moving average since early November. So far, buyers are leaning against level. If the price starts to trade more comfortably below the level, expect the dip buyers to turn to sellers.
Fundamentally, the yield spreads between US and European markets are a contributor factor to the tilt and bias more toward the upside for the US dollar/downside for the EURUSD. US 10 year yield sits at 1.14%, while German 10 year yields are at -0.45%.. The spread of 159 basis points is not at the highs but it, is near the highs going back to March 2020.