Price decline stays above old swing ceiling area on the hourly chart
The EURUSD move to a new high for the month and in the process moved above the February 25 high at 1.22424. That is the good news for the buyers. The not so good news is that the momentum above that level was nonexistent. The high price reached 1.22448 – just about two pips above the high.
Buyers turned sellers in the price moved back down.
Looking at the hourly chart below, the decline on the pre-stock market anxiety (and USD buying), took the EURUSDs price below a corrective low from yesterday's trade at 1.21958, but fell short of the ceiling off the hourly chart from May 10 and May 11. That ceiling came between 1.2175 to 1.2181. The low price reached 1.2188 before snapping back to the upside.
The price rebounded has now reached 1.22381 with Feb 25 high at 1.22424 and the slightly higher high price for today (at 1.22448) as the next obvious target.
Get above each and traders will be looking for more momentum this time. The high price for the year comes in at 1.23488 from January 4th.
Stay below (and that is the low risk trade now – sell against the highs with a stop on a move above), and the battle will continue with 1.22424 as resistance and 1.2175-81 as support (with 1.21958 as an interim level to eye).
The stocks remain under pressure. The Dow industrial average is down -441 points. The NASDAQ is down -205 points. The S&P index is down 58 point. The Pavlovian reaction tends to be “buy the dollar” on stock weakness. Countering that, however, is that bitcoin is off it's $30,000 low and currently trades at $35,000. That is still down around $8400 or -19.3%, but it was worse.