Here we go again....
The EURUSD has returned back to the near converged 100 and 200 hour moving averages at 1.1320 area (blue and green lines). The pair's move to the downside came after the pair moved back above a higher swing area between 1.13148 and 1.13458, but stalled ahead of what I have as another swing area up to 1.1359. The high price reached 1.13513, before rotating back to the downside (and below the 1.13418 to 1.13458 - see red numbered circles).
We've seen this rodeo before is the price chopped back-and-forth, up and down, and all around. The 100/200 hour moving averages can/is a barometer for bulls and bears. Stay above is more bullish. Move below and traders expect lower levels.
A move below, opens the door for a possible run toward the swing lows from yesterday and last Thursday near 1.1283. It would probably find some support near the 1.1300 level ahead of that level.
Conversely hold support here and a rotation back toward the 1.13418 to 1.13458 would be targeted (once again).
Here we go again...
Stocks are opening with modest declines.
Fed's Mester spoke hawkishly, citing reducing the balance sheet, but did say that the Fed needs to communicate their plans first. The next FOMC meeting announce will be on January 26. The Fed blackout period will start this weekend. The Fed officials do not speak publicly between a week prior to the Saturday preceding a Federal Open Market Committee (FOMC) meeting and the Thursday following that meeting.
