EURUSD falls below the hourly MAs
The EURUSD traders had been expecting a more upbeat Draghi with inflation picking up a bit and perhaps some tail winds from a lower EURUSD. However, his views on inflation, were not supportive and the pair has moved lower - extending the trading range to the downside.
Technically, the price has tumbled below the 100 hour MA (at 1.0647) and more recently the 200 hour MA at 1.0615. The 38.2% of the move up from the Jan 11 low (see hourly chart above) has also been broken at the 1.0617 level. The low has extended to near 1.0600. Looking back, the 1.0619-29 level had a number of swing levels (see yellow area in the chart above). That will be eyed as close resistance now. We are currently trading in that area.
The Q&A will go on until 9:30 ET and anything can swing the pair. If the price moves above the resistance the 100hour MA will be eyed at 1.06479. In fact we just moved above that yellow area and are looking more toward the 100 hour MA now (blue line in the chart above). That line was support on Tuesday. Yesterday, on the break back below, sellers pushed even lower. Today in the Asian Pacific session, the price rise stalled against it but then broke above in the London morning session. Now we are back below it. So there has been action and reaction around the MA line.
Nevertheless, choppy trading conditions is more the norm during long extended press conferences like this one. So be prepared to accept the conditions.
