The EURUSD moved lower in the Asian/early European session and in doing so, extended to a new session low new low going back to December 2002. The day's low reached 1.00705 before rebounding coming into the US jobs report. The high price, on the correction reached 1.0168. That was just above the close from yesterday at 1.01608. The price low after the report reached 1.01148. The current prices trading at 1.0143.
Looking at the hourly chart, the low price from yesterday reached 1.01433. Traders may watch that level as resistance in the short-term. Stay below is more bearish. Move above and there may be some short covering.
For the week, the high price was on Monday up at 1.0462. The close from last week was at 1.0420. For the week, the price has declined on each of the trading days. The EURUSD has declined 6 consecutive trading days overall and 8 of the last 9 trading days. Since June 27 when the price high reached 1.06144 the price has declined around 545 pips (9 trading days).
The driving force is continuing to focus on expectations for growth in the US while Europe is struggling with higher inflation expectations and expected lower growth. Moreover the ECB is stuck with the dilemma of lower rates, high inflation, and slower growth which puts into question policy going forward. Of course the Ukraine war continues to put a strain on the economy due to the reliance on Russian energy and commodities.
As I type, the price is moving back above the low from yesterday and the price has move back up to 1.0156. Traders may be getting whipped around after the new decline failed to extend closer to the low for the day despite the better data.
US stock market , the major indices are tracking lower according to futures the data. The futures are pointing toward
- Dow down around -39 points,
- NASDAQ is the biggest decliner with a fall of -138 points.
- S&P is down around -21 points.
