The EURUSD has pushed higher on the back of dollar weakness due to the weaker economic data along with sharp moves lower in the US yields.
The 10 year yield is dwon -18.6 basis points at 3.616%. The yield peaked last week at 4.019% on Wednesday..
Looking at the hourly chart, the yield has moved below its 100 and 200 hour moving averages (blue and green lines. A lower channel trendline cuts across at 3.536%.
Technically for the EURUSD, the high on the move to the upside has stalled against the downward sloping trendline near 0.9827. Move above that level and traders will target the high from Friday's trade at 0.9853. Above that and the 50% midpoint of the move down from the September high cuts across at 0.9866. There is a swing area between 0.9863 and 0.9879.
The buyers started to tilt the control back in their favor with a move back above its 200 hour moving average last week (green line at 0.97334 today). Admittedly, the price action on Friday was up and down with the price dipping below the 200 hour moving average midday. Today, sellers against the topside trend line in the early European session also push the price back down. However, the low has remained comfortably above the falling 200 hour moving average on the downside keeping the buyers still in play. Topside trend line and the other aforementioned levels - including the 50% midpoint on the hourly chart - to keep the momentum going.
Taking a broader look at the daily chart below, the 38.2% retracement of the move down from the August high cuts across at 0.98533. That was equaled to the high price from Friday's trade. It is also near the swing low area from end of August early September (see lower red box in the chart below).
Move above that area would be needed to increase the bullish bias from that perspective. Alternatively, sellers could continue to lean and keep the step down seller in control. Key level going forward.
