The EURUSD has broken to a new session high. The break above the Asian and London session high near 0.96014 and move into positive territory for the day above 0.95924, gave the buyers the go ahead to push to the upside.
Earlier in the session, the price did move to a new cycle low at 0.9535 (lowest level since 2002). That took out the low from Mondays trade at 0.95487, but momentum could not be sustained on the break(s).
On the topside, the 0.9662 to 0.9708 area represents swing low levels going back to June to October 2002. The falling 100 hour moving average at 0.9677 and the 38.2% retracement of the move down from the September 22 high (was the start of the last trend like to the downside) also at 0.9677 are upside targets that would need to be broken for the buyers to take more control. On Monday and Tuesday, the price highs stalled in that area.
The price has now moved back below the old session highs at 0.96014 (trading at 0.9600 as I type) as Fed’s Bostic said 75 basis points and 50 basis points in December are the likely baseline scenario. Meanwhile Stanley Druckenmiller is calling for a hard landing in 2023.
The NASDAQ index is down -33 points or -0.30% at 10795. The S&P is unchanged. The Dow industrial average is up 10 point.
Although the EURUSD made a break to the upside to new session highs, the 0.9662 – 0.9708 area remains a key level as is the falling 100 hour moving average at 0.96772. If the price cannot get above those levels, the sellers remain in control.