EURUSD trades to lowest level since early April
The EURUSD is moving lower (dollar higher) after Fed’s Bullard painted a more hawkish picture than the market was expecting after the FOMC decision on Wednesday. Tapering, rate hikes, higher growth and potential inflation has the markets spooked.
Looking at the 4 week chart of the EURUSD, the price moved down and through a swing area yesterday between 1.1910 and 1.19268. The high price today moved up at 1.19244 – just below the high of that swing area. That kept the selllers more in control. The price moved lower. Going forward, stay below that area still keeps the sellers in control. Closer in, traders could also look to the low from yesterday at 1.18906 as close risk.
On the downside, the 1.1860 is a target (a swing low floor area from early April). Move below that level and traders would look toward the March 9 swing low at 1.18348.
A look around the markets:
- Dow -350 points
- S&P down -32 points
- Nasdaq down -81 points
- Gold now higher by $6 at $1779 vs a low at $1773.18
- 2 year at 2.29% up 2 basis points
- 10 year at 1.509%, up 0.5 basis points