EURUSD leak to the downside continues as stocks trade to new lows/yields higher

Technical Analysis

The EURUSD continues to leak oil and wander to the downside. The pair is trading at its lowest level in the US session. Stocks are trading to new session lows. The S&P is moving back toward unchanged. The NASDAQ index is down -53 points at -0.42% at 12800.99.

Yields are also higher with the 30 year up 14.7 basis points at 3.18% after a bad 30 year auction. The 10 year is up 10.6 basis points at 2.891%. The 2 year is up 1.5 basis points at 3.231%

Looking at the hourly chart of the EURUSD, the pair is getting closer to the swing high from last week at 1.02934 (the low just reached 1.03089). The swing low from July 21 comes in at 1.02773. If the price should start to move below those levels, it would start to get back into the “Red Box” that confined the pair for a consecutive days between 1.0096 and 1.02934.

The highs on the daily chart below is also a concern for longs. The pair could not get above the topside swing area nor the 50% of the move down from the end of May high between 1.03395 to 1.03688. That was a key topside target, but the sellers leaned and the price has pushed back below the lower extreme of the area now.

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