EURUSD trades to highest level in a month

The EURUSD is trading to a new high after breaking above the swing area between 1.06087 and 1.0616 area. The run to the upside has also extended above a swing area up to 1.0639 and is now looking to test the 61.8% retracement of the move down from the September 12 high at 1.06464.

Helping the dollar slide is yields moving lower.

  • The 10-year yield is now down at 4.865% -5.9 basis points.
  • The 30-year is down -7.4 basis points just above the 5% level at 5.0142%.
  • The 2-year yield is now negative as well although slower to come down at 5.077%.

What next?

A move above the 61.8% retrace would have traders targeting swing highs from September 21 and September 22. There was a swing low reached on September 20 as well near that level increasing its importance.

The downside close risk is at 1.06316 now.

The EURUSD range for the day is now up to 75 pips. That is just above the 72 average over the last 22 trading days (about a month of trading). That may give buyers some cause for pause (with stops on more momentum above 1.0646 though). Sellers here would get more confidence from a move back below 1.06316.

This article was written by Greg Michalowski at Source