The sellers in the EURUSD after the CPI data cracked below the 100-hour moving average at 1.0585, but initially found support against the broken 38.2% retracement of 1.05709 (see chart above). Those levels have now both been broken after the corrective move higher found willing sellers against its 100-hour moving average (at 1.0585 – see line above on the chart above).
The price is now testing a swing area between 1.0551 and 1.0557. Below that is the key 200-hour moving average of 1.0544. Moving below each increases the bearish bias and opens the door for further selling.
It would now take a move back above the 38.2% at 1.05709 in the short term to disappoint sellers. More conservative sellers looking for further downside momentum would not want to see the 100-hour moving average broken at 1.0585.
Yields are moving higher with the 10-year yield now up 1.7 basis points at 4.64%. The 2-year yield is leading the way with a gain of 6.6 basis points to 5.071%.
The U.S. Treasury will auction off 30-year bonds at 1 PM ET. The 3 and 10 year note auctions were met with fairly tepid demand with larger than expected tails on the results.
Feds Logan will be speaking in around 10 minutes’ time. She spoke earlier this week and is giving opening remarks at a tech conference. So it may be that comments might be limited until potential Q&A. Logan did indicate that inflation remains a concern but it may be time to see what happens given the impact from the past hikes.
US stocks are modestly lower with the Dow, S&P, and NASDAQ index all down by -0.02% to -0.07%.
This article was written by Greg Michalowski at www.forexlive.com. Source