EURUSD moves back up to test swing area. Get above 1.08485 would tilt short-term bias.

<p>The EURUSD has moved back to the upside after starting the US session moving to the downside. The low in the New York session reached 1.08135. I came up short of the low from yesterday at 1.08017 and the 200 day moving average at 1.0799.</p><p>The subsequent move higher has taken the price to a US session high 1.08481. There is a swing area between 1.0833 and 1.08485. So far sellers have put a lid on it near the high of that swing area (see red numbered circles on the chart above). However, if the price extends above, we could see further short covering.</p><p>Fed Harker remained in line with his view to keep rates steady for a while. On policy he said:</p><ul type="disc"><li>At this
point, I see the Fed holding steady this year. Next year is data-driven.</li><li>If inflation comes down next
year, could cut rates.</li><li>Let the
restrictive policy stance play out, should lower inflation.</li><li>Policy is in
a restrictive stance.</li><li>We should
keep stance restrictive for a while.</li></ul><p>US yields are off their high levels:</p><ul><li>2 years is at 4.988% up 3.6 basis points, but off its high yield of 5.027</li><li>10-year yield 4.209%, up 1.2 basis points, but off its high yield of 4.239%</li><li>30-year yield 4.284%, unchanged and off its high yield of 4.310%</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.