Euro Fall Back To SMA
Daly’s comments on inflation have sent the dollar moving upwards, which in turn has caused the EURUSD to move back below the 100/200 hour moving averages. This tilt in the bias back to the downside started earlier today,
when prices in the Asian session tried to break out to the upside and above the 50% midpoint of the move down from June 27th’s high. That level came in at 1.02829, but prices only reached 1.0293 before buyers started to fade away. The stops were triggered, and follow-through buying was weak, forcing sellers back into the market.
With the price now below the hourly moving averages, traders will be focusing on the lower extremes of the range. First, there is an upward sloping trend line at 1.0181 that the price is looking to test. A move below that level would shift trading focus to other recent lows, such as the low from Friday at 1.0145, the low from Thursday at 1.0115, or the low of the ups and downs at 1.0095. A move outside of those levels would mean that the pair has exited the up and down range that has confined it since July 18.
