EURUSD trades in the 100 hour MA above and the 200 hour MA below

EURUSD trades between its 100 and 200 hourly moving averages

The EURUSD

EUR/USD

The EUR/USD is the currency pair comprising the single currency of the European Union, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair rate indicates how many euros are needed to buy a dollar. For example, when EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why EUR/USD is the most popular trading pairCompared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world, behind the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is a staple of all brokerage offerings and often has some of the lowest spreads compared to other pairs. Ultimately, the currency trails the two most economical blocs in the world and sees the most volume for this reason. EUR/USD has a wide range of factors that influence its rates. On the Euro side, Eurozone economic data as well as internal bloc factors can easily impact rates. Even smaller member states can effectively weigh on the euro, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and at the Federal Reserve generally affect the EUR/ usd. Many examples include bailouts during the financial crisis, tax cuts under the Trump administration, and Covid-19 relief measures, among others.

The EUR/USD is the currency pair comprising the single currency of the European Union, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair rate indicates how many euros are needed to buy a dollar. For example, when EUR/USD is trading at 1.2, it means that 1 euro equals 1.2 dollars. Why EUR/USD is the most popular trading pairCompared to all tradable currencies, the Euro (EUR) is the second most traded currency in the world, behind the US Dollar. This currency pair is the most traded and liquid currency pair in the market. As the most popular trading pair, EUR/USD is a staple of all brokerage offerings and often has some of the lowest spreads compared to other pairs. Ultimately, the currency trails the two most economical blocs in the world and sees the most volume for this reason. EUR/USD has a wide range of factors that influence its rates. On the Euro side, Eurozone economic data as well as internal bloc factors can easily impact rates. Even smaller member states can effectively weigh on the euro, as seen in Greece during bailout talks in the 2010s. Alternatively, developments in the United States and at the Federal Reserve generally affect the EUR/ usd. Many examples include bailouts during the financial crisis, tax cuts under the Trump administration, and Covid-19 relief measures, among others.
Read this term is trading high and low today within a relatively narrow trading range. The low to high trading range is only 37 pips. It’s way below 97. seed

Seed

In the foreign exchange markets, a pip is a percentage point or point of interest (pip), reflecting a unit of change in an exchange rate. Major currency pairs are traditionally valued to four decimal places – a pip is a unit of the fourth decimal place, or 1/100 of a cent. The exception in this case is the Japanese yen, in which a pip is a unit of the second decimal place. Pips adhere to a rate of change that can be tied to a change in value in a specific exchange rate position. Forex is often traded in lots of 100,000 units of a base currency. In this case, a one-lot trading position with a 1 pip change would see a change in value of 10 currency units. Understanding Pips in Forex Trading Pips can best be understood using an example of two currencies. For example, if NZD/USD is trading at an exchange rate of 0.6800 and the rate moves to 0.6810, then the price ratio increases by 10 pips. Extending this example, if a forex trader buys 5 lots (i.e. 5 × 100,000 = 500,000) of NZD/USD, paying $650,000 and closes the position after the 10 pip appreciation, the trader will receive $650,500 with a profit of $500 (i.e. 500,000 (5 standard lots) × 0.0010 = $500). Pips are very relevant to forex traders given the use of leverage and the transactions that take place in margin accounts, which require very small percentages of the actual purchase price as equity to a given transaction. Some retail brokers will quote currency pairs beyond the standard 4th or 2nd decimal place, instead of 5th or 3rd decimal place. These are fractional pips, called pipettes.

In the foreign exchange markets, a pip is a percentage point or point of interest (pip), reflecting a unit of change in an exchange rate. Major currency pairs are traditionally valued to four decimal places – a pip is a unit of the fourth decimal place, or 1/100 of a cent. The exception in this case is the Japanese yen, in which a pip is a unit of the second decimal place. Pips adhere to a rate of change that can be tied to a change in value in a specific exchange rate position. Forex is often traded in lots of 100,000 units of a base currency. In this case, a one-lot trading position with a 1 pip change would see a change in value of 10 currency units. Understanding Pips in Forex Trading Pips can best be understood using an example of two currencies. For example, if NZD/USD is trading at an exchange rate of 0.6800 and the rate moves to 0.6810, then the price ratio increases by 10 pips. Extending this example, if a forex trader buys 5 lots (i.e. 5 × 100,000 = 500,000) of NZD/USD, paying $650,000 and closes the position after the 10 pip appreciation, the trader will receive $650,500 with a profit of $500 (i.e. 500,000 (5 standard lots) × 0.0010 = $500). Pips are very relevant to forex traders given the use of leverage and the transactions that take place in margin accounts, which require very small percentages of the actual purchase price as equity to a given transaction. Some retail brokers will quote currency pairs beyond the standard 4th or 2nd decimal place, instead of 5th or 3rd decimal place. These are fractional pips, called pipettes.
Read this term average of the last 22 trading days.

Technically, remember yesterday that the 200 hourly moving average blocked the drop after the index peaked on Monday’s Memorial Day holiday trading day, and began its slide. The pair fell below its 100 hourly moving average (blue line in the chart above) yesterday, but once the 200 hourly moving average was reached at 1.0678, sellers turned buyers and pushed up the price. The price closed just above its 100 hourly moving average.

During the Asian session, the price fell back below the 100 hourly moving average towards a swing zone between 1.0696 and 1.0706 (see the numbered red circles). This former led to a modest rebound towards the 100 hourly moving average at 1.07347. The price briefly traded above the 100 hourly moving average but was unable to maintain its bullish momentum.

At the start of trading in New York, rising stock yields helped pull the price back towards the rising 200 hourly moving average which currently sits at 1.06966.

With the price confined by the moving averages, the trading bias is neutral. Traders are waiting for the next push.

On the upside, an upward move will look towards the 1.0748 to 1.0760 area. Followed by Monday’s high at 1.07857. On the downside, a break below the 200 hourly moving average would target yesterday’s low at 1.067887. Below this level, there is a key support swing zone between 1.0633 and 1.0641. Move below this level and the 30.2% retracement of the rise from the May low comes in at 1.06187

Basically, the EU PMI data was weaker than the previous month, but higher than the preliminary PMI data. Yesterday, the CPI in the EU reached 8.1% against 7.5% the previous month. It was the highest level ever recorded. The ECB’s Holzman and Kasimir both indicated they were open to a 50 basis point hike in the deposit rate in July.

Meanwhile in the United States, rates are beginning to rise. The Fed’s Bostic walked back his September pause comment. The Fed is expected to raise rates another 50 basis points over the next 2 meetings at least.

Later today, the US Beige Book will be released. Fed’s Daly (San Francisco Fed Pres.), Williams (New York Fed Pres.) and Bullard (St. Louis Fed Pres.) will also speak.

Bullard pleaded for the Fed to tighten rates to 3.5% by the end of the year. He is the most hawkish of Fed officials.

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