The markets turn to dollar buying
The Cleveland Pres. Mester is speaking on CNBC and has gotten in line on the “sooner is is better than later” with regard to tapering. The comments are not that different from other Fed officials, but the market is reacting in a “buy the dollar” way.
For the EURUSD, the pair moved back below its 100 hour moving average at 1.17503, after finding support buyers near the level earlier today (it did dip below the level in the early Asian session but quickly rebounded). It would take a move back above the level to upset the sellers now (failed break).
On the downside, the 200 hour moving average at 1.17267 is now a target level. The price just dropped below the low for the day at 1.17416 (as I type – not reflected in the chart above). The current price is trading at 1.1736.
The 200 hour moving average is near a swing area (see green numbered circles) between 1.1723 and 1.17264. Move below that level should open the door for further downside. The price has not traded below that level since Monday. Lows on Tuesday and Wednesday stalled in that area.
Feds Kaplan is also speaking currently on Bloomberg TV. Kaplan was more hawkish yesterday versus his comments last week.
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