Back below the 200 hour MA
The EURUSD started the NY session at the highs for the day. The pair was testing the 61.8% of the move down from the April high at 1.09887. See earlier post here.
As stocks in the US gave up ground, so did the excitement of holding EURUSD. Funds have flowed back into the USD as a safe haven, and in the process technical levels in the EURUSD were breached turning buyers into sellers.
On the way lower, the 100 bar MA on the 4-hour chart was broken at 1.08654 followed by the 50% retracement of the move down from the April 15 high at 1.08576. The bullish waters got muddy, and the earlier buyers on the day, turned to sellers.
The pair has more recently moved back below the 200 hour MA at 1.08355, and even turned negative on the day (closed at at 1.0828 - the low just reached 1.08242). We currently trade above and below the 200 hour MA as the market digests the reversal. The market is trying to muster a rebound, but is simply not sure.
Sellers wrestled control from the buyers and indeed the waters are more muddy. On more downside, the 100 hour MA (at 1.08136) and the lows for the day at 1.08089 will be the next targets. Get below those levels and things could get even more bearish for the pair.
On the topside, what was once support is now resistance. The 50% retracement was a hurdle yesterday that failed. Today it was finally broken and there was more upside run, but that failed too. It should make getting to the level more difficult as a result.
The Nasdaq and the S&P indices are now negative on the day. The Nasdaq index has moved back below its 100 day MA at 8675.46.
