Monday December 12, 2016 - 18:53:28 GMT
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EURUSD 1.05 Being Defended?
With EURUSD only making a tepid run at 1.05, the currency corrected in line with a generally softer dollar trend to start the week. The following post from the Forex Forum suggests 1.05 is being defended and cites the catalyst for the dollar correction.
Forex Trading Themes For Monday 12 December 2016
NY JM 18:46 GMT 12/12/2016
The dollar is lower today after US bond yields slipped back from earlier highs, specifically the US 10-year after failing to hold above 2.50%. The price action shows the sensitivity to US yields, especially in USDJPY but EURUSD as well. This suggests 2.50% will be pivotal both pre-FOMC and especially afterwards.
In EURUSD, the pause above the 1.0505 low (low 1.0525) suggests the pivotal 1.05 level continues to be defended. There are no obvious key levels nearby on top so focus will be on how it trades vs. 1.0630, Friday resistance that saw stops run above it today.
Levels to watch:
1.0659 = 38.2% of 1.0875-1.0525 (note 100 and 200 hour moving averages are currently converging around 1.0660
1.0695, former support.
On downside, 1.0630 is obviously pivotal with 1.06 likely to be pivotal as well with support below it at 1.0590 to 1.0505-25
Looking ahead, market is in a holding pattern waiting for the FOMC. Price action is still just corrective and would have to move back above 1.0695 to suggest otherwise.
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