Rates stabilized and moved off highs and stocks rebounded. That has led to a reversal in the USD to the downside.
For the EURUSD, the price fell below the 61.8% retracement of the move up from the end of May low at 1.0880 on its way to a low price of 1.0874. However, the price has snapped back higher and in the process has returned back to its broken 100-day moving average of 1.09303. The high price just reached 1.09304 and found sellers on the test. The current price is trading at 1.0922.
If the price is to go higher, getting back above its 100-day moving average (and then above the 50% of the range since 2021 at 1.0942) would disappoint the sellers on the failed break.
Recall the price had been bouncing off/near that moving average level. It would not be good for shorts for the price to move back above that level with any sort of momentum.
Stay below and trade would once again target the 61.8% retracement 1.0880.
See my earlier NY morning video on the pair below:
This article was written by Greg Michalowski at www.forexlive.com. Source