EURUSD retraces back toward hourly MA levels as buyers yesterday, turn to sellers today

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, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others. 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, behind only the US dollar. This currency pair is the most traded and liquid currency pair on the market.As the most popular trading pair, the EUR/USD is a staple of every brokerage offering and often has some of the lowest spreads relative to other pairs. Ultimately, the currency follows the two most economic blocs in the world and sees the most volume for this reason.The EUR/USD has a wide range of factors that influence its rates. From the EUR side, economic data in the Eurozone as well as internal factors in the bloc can easily impact rates. Even small member states can effectively weigh on the EUR, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and the Federal Reserve commonly affect the EUR/USD. Many examples include the bailouts during the Financial crisis, tax cuts during the Trump Administration, and Covid-19 relief measures, among others. Read this Term trended higher in the US session yesterday and in the process, extended above the 100 and 200 hour moving averages, the 61.8% retracement of the range from November 30, and the swing highs from Friday (at 1.13332) Thursday (at 1.13469) of last week. The pair did fall short of the Wednesday high at 1.1359. The high price for the day reached 1.13543.

Today those buyers have turned into sellers and taken the price back below those old swing highs and the 61.8% retracement. The pair is reapproaching the 200 hour moving average at 1.1303 just above that level is the 50% midpoint of the range since November 30 at 1.13044. Below each of those levels is the 100 hour moving average of 1.12951.

Those moving averages should provide some cause for pause. The low price just reached 1.13063 just ahead of those levels. Risk can be defined and limited against the levels.

However, if the price should move below, the sellers would assume more control once again.

On the topside keep in on the 61.8% retracement 1.13228. On the move below today, sellers start to line up against that level before the last run toward the 200 hour MA. A move back above that level, may entice more intraday buyers once again.