EURUSD trades to new highs into the London close

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EURUSD higher, but falls short of the falling 200 hour MA

London trader are heading home with the EURUSD reaching a new high for the day before the clock ticked 5 PM.

US traders in the morning session that saw retail sales (better than expected), industrial production (worse than expected) and Michigan consumer sentiment (better than expected).

The Fed speak saw

  • Bullard up his 2022 end of year target by 25 basis points to 3.75% from 3.5%, but does not necessarily see the extra 25 basis points in July.
  • Fed's Daly is on track to higher rates but is ok with 75 basis points.
  • Atlanta Fed's Bostic dialed back his implying 100 is not off the table earlier this week (PS the Atlanta Fed GDP worsened to -1.5% in the 2Q). He said, moving "too dramatically" could undermine positive aspects of economy and add to uncertainty.

The EURUSD moved to a high of 1.0097 after testing the 100 hour MA on three separate hourly bars in the NY session at 1.00376. The lows reached 1.0043, 1.0040 and 1.0043 just ahead of the 100 hour MA on three consecutive hourly bars before moving higher.

Support holding kept the buyers in play.... with "work to do".

The "work to do" is an extension to and through the 200 hour MA. ON that, the pair has still fallen short. The 200 hour MA currently comes in at 1.01132. The high price reached 1.00973. So even the 1.0100 target came up short. The current price trades at 1.0081.

Technically, on the downside traders will watch the 1.0072 - 1.0074 area as close intraday support. If that can hold are still shot for a run up toward a test of the 200 hour moving average (and potentially above it) before the close. Move below, and a run back toward the 100 hour moving average may be the path of least resistance.

At this point a move higher would probably depend upon a continued run up in the US stocks, and perhaps a run to the downside in yields. The 10 year yield is currently down -5.3 basis points at 2.912%. The low yield reached 2.900% so far. The major indices are higher but off the highest levels.

  • The Dow is up 545 points or 1.77%.
  • The S&P is up 58.41 points or 1.54%.
  • The NASDAQ is up 147 points or 1.31%

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