EURUSD trades to highest level in a month

<p>The EURUSD is trading to a new high after breaking above the swing area between 1.06087 and 1.0616 area. The run to the upside has also extended above a swing area up to 1.0639 and is now looking to test the 61.8% retracement of the move down from the September 12 high at 1.06464.</p><p>Helping the dollar slide is yields moving lower. </p><ul><li>The 10-year yield is now down at 4.865% -5.9 basis points. </li><li>The 30-year is down -7.4 basis points just above the 5% level at 5.0142%. </li><li>The 2-year yield is now negative as well although slower to come down at 5.077%. </li></ul><p>What next?</p><p>A move above the 61.8% retrace would have traders targeting swing highs from September 21 and September 22. There was a swing low reached on September 20 as well near that level increasing its importance.</p><p>The downside close risk is at 1.06316 now.</p><p>The EURUSD range for the day is now up to 75 pips. That is just above the 72 average over the last 22 trading days (about a month of trading). That may give buyers some cause for pause (with stops on more momentum above 1.0646 though). Sellers here would get more confidence from a move back below 1.06316. </p>

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