EURUSD Falls Through the 200 hour MA 50% Midway Breakout
Today, the EURUSD dropped quickly. If you look at the hourly chart above, you'll notice that the pair was also moving to and through a couple of critical technical levels at the lows today.
The 200-hour moving average and the 50% midpoint of the run-up from last week's low to this week's high were among those milestones. Several technical levels have come together at 1.0722.
The low price reached 1.07125, about 10 pips below the level, but was unable to maintain momentum and quickly rebounded above it. The current exchange rate is 1.0764. This morning, the resistance ranged from 1.0744 to 1.07592. Staying below that level would give the sellers complete control.
The price is attempting to re-break above that level. The 38.2% retracement has been broken at 1.0711, and the 100-hour moving average (blue line in the chart above) is at 1.0794. They are topside objectives.
The stock market has found some solace. Deutsche Bank shares are presently trading at $8.34, up from a low of $7.96. After trading as low as $41.28, the US regional bank ETF index (KRE) is presently trading almost flat at $42.16.
The major indices are still down, with the Dow down 192 points or 0.59%, the S&P down -21 points or -0.54%, and the NASDAQ down -58 points or -0.49%, but they are all off-day lows.
Finally, US yields are rising, but only a little. Higher yields in this situation indicate less worry and less flight to safety:
- 2-year 3.703% down 10.02 basis points. It traded as low as 3.555%
- 10-year yield 3.354%. The intraday low was at 3.287%
- The 30-year yield of 3.65%, up from 3.603%