EURUSD moves back into swing area and above 1.0700

Price action is a volatile as earlier declines in US stocks were bought back higher. The major indices are now mixed with the Dow down -0.20%, the S&P down -0.42% and the NASDAQ index trading above and below unchanged. The Russell 2000 still remains sharply lower it is down close to -2.0% as the small-cap stocks take it on the chin. Ironically (and I don't really understand), the ARK Innovation fund is trading up 0.39%.

In the US debt market yields remain sharply lower:

• 2 year -51 basis points at 4.08%
• 10 year down -19 basis points to 3.509%
• 30 year down -9 basis points to 3.609%

The flows in and out of the stock and bond markets are helping to whip around the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term.

For the EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be Read this Term, looking at the hourly chart above, the price action has seen ups and downs and back up again (USD down, USD up and USD down again).

Technically, the high price in the European morning session took the price of the EURUSD above a swing area between 1.0707 and 1.07243. The high price moved to 1.0736 on two separate occasions, but could not sustain the upside momentum. The 38.2% retracement of the move down from the February high to the March low was also broken at 1.07177. After stalling near 1.0736, when the price fell back below the 1.0707 level, buyers turned back to sellers

The subsequent move to the downside (move higher in the USD) in the European session took the price to another swing area on the downside between 1.0653 and 1.06685. The low price extended to 1.0650 just below the low of that swing area.

This time sellers turned back to buyers. The move back higher has now pushed the price back to the higher swing area between 1.0707 1.0724. Sellers have so far leaned against the 1.0724 level this time. The current price trades right around the 1.0700 level.

Overall for the day buyers and sellers are battling it out. If I were to focus on levels, on the downside 1.06532 is support, and on the topside 1.07243 would be my topside barometers. Move above or below those extremes would be a break. Look for momentum in the direction of the break.

In between those extremes watch the 1.0692 area as an interim bullet/bearish bias defining level. That was near a high price on March 1. It was near a high price on March 6 and a high price on March 7. (See green numbered circles). Stay above keeps the buyers more in control. Will below and the bias shifts back to the sellers in the short term.