The EURUSD moved down to test the low from September 6 at 0.98634. The low price today reached 0.98659 so far. The current prices trading at 0.9881.
As mentioned in the morning video, with the price trading near multi-decade lows, it is the buyers who need to prove that they can take back control. One of the levels of importance on the topside comes in at 0.99515. That was the swing low from July 2022. That area helped to stall the fall over the last 5 or so trading days. Today the price broke below and raced to the downside.
A closer level to get above would be above the 0.9913 level (see lower yellow area and red numbered circles).
So what about the downside? What is the next target area?
Looking at the weekly chart, if you go back to May 2000 through October 2022, the price had ceilings and floors between 0.9590 and 0.9691. That 100 pip trading range would be the next key target area on further weakness through the FOMC rate decision. Break below and the price is trading in the extreme low area going back to part of 2000,2001 and part of 2002.
Sellers are in control going into the key FOMC decision, central tendencies, dot plot and the presser. The levels outlined above would need to be broken to shift that bias back to the upside.
US yields remain above 4%. The 10 year is at 3.577%, up 1.0 basis points.
The US stock buyers are trying again to pick a bottom. The major indices are up 0.56% to 0.67%.