Dollar move lower sends pair running higher
Yields in the US continue to fall with the 2 year down -6 bps and the 10 year down -4.6 bps. That has sent the dollar lower.
For the EURUSD, the price cracked above the 100 hour MA (blue line) at 1.1348 and then the 50% of the move down from the November 20 high at 1.1369.
The run has stalled near the 61.8% at 1.1393 at least for the moment. The 1.1387-1.1401 is a swing high area from last week (the highs from last week). That area was broken on Tuesday but could not sustain the momentum.
The pair – like many – are trading back and forth. What seems like a bearish run, can stall and reverse the run. The 50% retracement is often a barometer for the bias, and so are the lower moving averages. The breaks of each today were the signal the buyers needed. The remain risk levels for longs, but also pay attention to the targets above as they can stall the market as well.