EURUSD trades in the swing area – now back above – after tumble lower bounces – ForexLive

The EURUSD is trading back above a swing area between 0.9662 and 0.96836 area. This level was outlined in my pre-CPI playbook here.

The CPI data sent the price down through that area, but buyers came in near the swing area from September 28 and 29th near 0.96354 (see red numbered circles on the chart below). The low price reached 0.9631 just below that level before bouncing higher.

The holding of that level pushed the price back up into the swing area (see blue numbered circles). Stocks coming off their low levels as given another squeeze to the upside above the 0.96836 level as I type.

That move will have traders looking toward the 100 hour moving average at 0.9712. The high price off the low has so far reached a nice natural level at 0.9700.

EURUSD bounces back toward 100 hour MA

The EURUSD has held up reasonably well given the surge in US inflation and expectations for even higher terminal rate near 5%. The price is down on the day but only marginally now.

Technical support target held on the downside near 0.9635. The price is back above a swing area (above 0.9662 – 0.9683). Remember, the 0.9662 was a low swing level going all the back to June to October of 2002 (see my past videos).

On the bearish side, the price is still below the 100 hour moving average which will be a key barometer today and going forward. Stay below keeps the tilt still in favor of the sellers. Short term traders/sellers will lean with stops on a break above.

Also of note is that the high price today did stall within a swing area between 0.9733 and 097506 area. That too keeps the seller in play/control. A move above that level would have traders looking toward the 200 hour MA at 0.9790.

For now, however, the buyers are making more of a play, but they have work to do.

Dow is down only – 185 points or -0.64%. The NASDAQ is down -170 points or 1.62%, and the S&P is down -36 points or -1.00%

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