Back below the swing area and the 100 hour MA now
The EURUSD has continued its run to the downside and now trades below and away from the 100 hour moving average 1.16194, and the low of the swing area at 1.16165 . The price just traded also below the 1.1600 level to a new low of 1.1596. The next target area comes between 1.15815 and 1.15860 (swing area – see red numbered circles).
Remember it is month end. The London 11 AM fixing can be quite volatile. Needless to say the dollar has been bid today. It is making new highs verse the GBP, CHF, AUD and NZD in the current hourly bars, and just off high levels verse the JPY and CAD. So there seem to be a bias in that direction.
US yields have come off their high levels especially out the curve, but the shorter and still is higher (five year up 3.7 basis points, while the 30 year is down -1.0 basis points).
Anyway, sentiment can switch around but the month and flows can be dominant. Be aware.
