As the clock ticks toward the stock market open, the EURUSD is breaking to the upside.
Major US indices in pre-market trading are showing sharp declines
- S&P index -59.32 points
- Dow industrial average -342 points
- NASDAQ index down -255 points
Traders will be nervous once again ahead of the tariff news at 4 PM ET.
In the US debt market, yields have pushed to the downside with the 2-year yield now down -2.0 basis points and the 10 year yield now down -4.2 basis points.
Meanwhile, the EURUSD is moving higher in the early North American session. From the morning video, I noted that the range for the pair was a narrow 28 pips. Buyers took charge when the price broke above the converged 100 and 200 hour moving averages at 1.0804. The price high has now extended up to 1.08252. That has extended the day’s trading range to 46 pips which is still short of the 84 PIP average of an last 22 trading days (around a month of trading. There is room to roam.
Going forward the 100 and 200-hour moving average is now support. On the top side with increase momentum, the next targets comes in at
- 1.08298 – swing highs from March 25 and again yesterday)
- 1.0848 to 1.08594 (swing area).
