EURUSD Technicals: The EURUSD bounces and retraces the declines from the PPI

The useful part

PPI data, but the sellers could not extend the decline through the next key target area. The low reached 1.1593, stopping short of the swing level at 1.15849 (see red numbered circles on the chart below) before buyers stepped back in. The rebound was also supported by the ECB's decision to raise interest rates by 25 basis points.

How it works

• The EURUSD moved lower following the stronger-than-expected U.S.
• Subsequently, sources indicated that another rate hike could be considered as soon as October.
• Crude oil prices are also still higher with the price currently up at $100.75.
• Technically, the rebound has taken the EURUSD back toward an important cluster of moving-average resistance.
• The 100-hour moving average comes in at 1.16252, while the key 200-day moving average is just above at 1.16321.

What to take from it

If the price can move above the 200-day moving average—and stay above—it would weaken the bearish bias and give buyers more confidence. On renewed weakness, the 200-hour moving average at 1.16137and the lower end of the nearby swing area at 1.16071 become the first support targets. This puts buyers and sellers in a battle near a well-defined technical ceiling.

Details worth keeping

What did not push the USD lower was lower rates. The 10 year yield is still up 8.5 basis points at 4.922%. The two-year is up 11.2 basis points at 4.539%.