Extends above the 108.00 area
Last week, the 107.00 level stalled the rally. The move higher in global yields - on hopes for higher US growth - are certainly helping to propel the dollar higher. The US 10-year is up about 5.4 basis points to 2.2065%. That is a bullish catalyst for the dollar. We are, however, down from 2.300% high. So will be eyeing if the momentum starts to fade. So far, we are not seeing much selling.
Technically, the price opened traded above and below the 200 day MA on Thurs/Fri of last week, but there was a ceiling against the 107.00 level. Today, the price opened above that 200 day MA level (at 106.495 today - green line in the chart below) and worked above the 107.00 level (stops triggered - see 5 minute chart below) and that helped push the price above the July high at 107.48. That level is now support. Looking at the 5-minute chart, the 200 bar MA on the 5-minute chart comes in at that level as well (at 107.479 currently - see green line in chart below).
Note that the correction in the late London morning session and the early NY session is holding an intraday trend line AND the 100 bar MA on the 5-minute chart (blue line in the chart below at 107.771 currently). That line has been tested 3 times now and is holding. Traders are leaning it seems. It becomes a level to define and limit risk. Stay above bullish. Move below and we might see that test down to the 107.48 level.
