Interest rate differential supporting the EURUSD
With the debt markets supporting another cut in rates from the Fed after the surprise 50 basis point cut earlier this week, the interest rate differential is helping to support the EURUSD.
Looking at the 5 minutes chart below, the pair is trading near its high levels for the day at 1.1348 after a brief dip post the US jobs report (the low reached 1.1305). That post employment low price stalled against an earlier intraday low price at/near the same level.
The double bottom (see green numbered circles in the 5 minutes chart below) is now close risk level for longs. Stay above and the bulls remain in control intraday. Move below and there could be further downside corrective action toward the rising 100 bar moving average (blue line in the chart below).
Taking a broader look at the daily chart below, the price yesterday moved above a downward sloping trendline at the 1.1175 area. Above that are the swing highs from early August and late December at the 1.1248 area. Those levels are also a risk level for bulls. Stay above and the buyers remain in control from a longer term prospective.
