The EURUSD moved sharply higher earlier today helped by the Washington Post article on the Trump tariffs. The news was more dovish and less inflationary and the USD and yields moved lower.
For the EURUSD the pair extended above the
- 100 hour MA (at 1.03403),
- 200 hour MA at 1.0374,
- 38.2% at 1.03783
- 50% of the trading range since 2022 at 1.0405 and finally the
- 50% of the move down from the December 2024 high to the low reached on January 2 at 1.04262.
That is where sellers started to take some profit.
Then when the report that Trump denied the WaPo article, the buyers turned to sellers, with the price extending to below the 200 hour MA, but above the 100 hour MA.
The snapback rally moved up to the 50% of the range since 2022 at 1.0405 and found sellers. However, selling off that high has dried up at the 200 hour MA.
So a short term battle is being waged going into the close and into the new trading day.
A move below 1.0374 (200 hour MA) would open the downside with the 100 hour MA at 1.03403 the next target.
ON the topside, get and stay above 1.0405 and the 1.04262 is targeted.
This article was written by Greg Michalowski at www.forexlive.com.
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