The EURUSD fell sharply today. I outlined the move using the 4-hour chart in the morning video.
If you dialed down to the hourly chart above, the pair was also moving to and through a couple of key technical levels at the lows today on that chart. Those levels included the 200 hour moving average and 50% midpoint of the move up from last week's low, to this week's high. Those technical levels are converged at 1.0722. The low price reach 1.07125 about 10 pips below that level, but could not sustain momentum and quickly rebounded back above the level. The current price is trading at 1.0764.
In the morning video I spoke to resistance near 1.0744 to 1.07592. Stay below that level would keep the sellers in full control. The price is trying to break back above that level. The broken 38.2% retracement at 1.0711, and the 100 hour moving average (blue line in the chart above) comes in at 1.0794. Those are topside targets.
There is some relief in the stock markets. Deutsche Bank shares are off their low of $7.96 and is currently trading at $8.34. The US regional bank ETF index (KRE) is trading near unchanged now at $42.16 after trading as low as $41.28.
The major indices are still lower with the Dow industrial average down 192 points or 0.59%, the S&P is down -21 points of -0.54%, and the NASDAQ is down -58 points or -0.49%, but they too are off low levels for the day.
Finally US yields are moving higher but still lower. In this case higher yields is an indication of less anxiety 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%
- 30 year yield 3.65%, up from 3.603%
Markets remain volatile, and subject to swift moves in either direction. Be aware.