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EURUSD moves to new session highs

Technically...more bullish as Yellen comments continue

The EURUSD overall is taking the first rate hike pretty well. The pair has now moved above the 100 hour MA (blue line in the chart below) at 1.0964 (this is now close support) and moves toward the next target at the 1.1027 level (underside of the trend line). The 200 day MA comes in at 1.10347. The 100 day MA comes in at 1.10588. Risk is a move back below the 100 hour MA and then the 200 hour MA at 1.0964 and 1.0933 will respectively.

That is the technical picture right now. That can change on a move back below the lower MA levels. Chair Yellen is stressing not to overblow significance which is giving the dollar some weakness.

The rubber will meet the road if and when the data comes out stronger than expected. I don't expect weak data to lead to a "take away" - rates are still very low and accomodative, but what happens if non farm payroll continues to come out strong. Will the market then start to price in more tightening sooner rather than later?

Right now, the bias is bullish for the pair. Familiar topside levels remain hurdles.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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