Forex technical analysis:EURUSD on the rebound
Dollar selling seen as yields and stocks fall
The EURUSD is being impacted by the recent move lower in the USD.
Technically, we knew the 200 hour MA, the 100 hour MA, the 38.2% retracement and trend lines would be a cluster of levels to get below. The price entered the area (see yellow area) but could not solicit much more momentum.
Shorts covered, with the help of the dollars reversal lower. The 1.23836 area remains a key line in the sand for bulls and bears.
The price did move above the line after the retail sales data but backed off. A retest should solicit a reaction for risk defining traders with stops on a break.
10 year yield is down 3.3 bps now at 2.8098%
The S&P is lower by -0.38% at 2755 but off the low at 2746.08