EURUSD moves lower after ECB raises rates by 25 basis points

The EURUSD initially moved higher but fell short of its high for the day after the central bank raise rates by 25 basis points. The high price reached 1.07469, but reversed quickly falling to a new low for the day at 1.06909.. The low price from last week reached 1.06854.

Technically, the move to the downside fell below its 200 and 100 hour moving averages at 1.07349 and 1.07312 (green and blue lines in the chart above). Admittedly, the price has traded above and below those moving averages over the last few days (including today) as traders awaited the interest rate decision. Nevertheless, they still represent upside resistance. Staying below those moving averages tilts the bias more to the downside.

A move below the low from last week, would take the price to the lowest level since June. The low price from the end of May reached 1.0635. The 38.2% retracement of the move up from last year’s low cuts across a 1.0610.

This article was written by Greg Michalowski at Source