EURUSD could not keep the bearish bias

Technical Analysis

The EURUSD moved lower on the news that the ECB would likely consider 75 bps at the October meeting. That meeting is still a ways away, but the “sources” comments highlighted that possibility.

The 200 and 100 hour MAs were broken in the process (green and blue lines). However, after bouncing higher and stalling at the higher 200 hour MA and also retesting the lower 100 hour MA, the price rose and moved above the 200 hour MA again. Sellers gave up. Buyers took back control.

EURUSD moved back above the 200 hour MA

So traders will now look toward the high for the day which stalled in a swing area between 1.0022 to 1.00328. Get above that level and traders will look toward the 38.2% at 1.0056 and the highs from the last two weeks.

Needless to say, the buyer and seller are each having their impact. Earlier this week, the price action was below the 100/200 hour MAs. Yesterday and today, most of the price action is above the MA levels. Traders are battling. Traders have “their day”, and then give up that control.

Looking at other currencies, the USD is weaker vs the CHF and CAD with each trading to new extremes on the day.

Stocks are back higher (they fell on the ECB sources news and have rebounded with the EURUSDs move back higher – or so it seems they are correlated).

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