The EURUSD made one last run to the downside in the NY session, reaching a new low for the day at 1.08082 just above the March 7 low of 1.0805. The inability to move below that low level turned sellers in the buyers, and the price has moved up over the last hour or two to new session highs (see earlier post).
The range for the day for the EURUSD has been extended with the current price is trading at 1.0855. However, the 48 pips is still well below the 22-day average of 83 pips. There is room to roam.
The next upside target comes against its falling 100 hour moving average (blue line) at 1.08672.
Recall from yesterday - and also on Monday - the EURUSD's price moved above that moving average level only to stall and rotate back to the downside.
As a result, getting and staying above the 100 hour moving average would be a key barometer and show the buyers willingness to push this pair higher after the trend move lower that has seen the pair run from 1.1184 on March 31to the low today at 1.0808 (376 pip decline in 10 days). Absent that, and the correction is still just modest attempts to bottom the pair.
A new high today is ok after the failed new low, but there is still a lot of work to do by the buyers if they are to take more control..
Helping the EURUSD are lower rates and an uptick in the US stocks which is leading to some flows out of the USD.
The US 2 year is down -9.0 basis points. The Nasdaq index is up 213 points or 1.6%.
