EUR/USD hits a low of 1.1716 on the day
We’re getting more follow through moves here following the FOMC meeting overnight. The dollar reversed losses then with EUR/USD failing at the 1.1800 handle before retreating below the 100-hour MA (red line). Price continued to stay below there and right now sellers are back in the mix prompting a test of the 200-hour MA (blue line) @ 1.1725.
Despite the «dovish» outcome from the Fed, the overall tone remains the same and the reversal last night was telling that there are still buyers in the dollar and we’re seeing more of that now. The real threat is the break of the 200-hour MA as that means near-term bias turns more bearish. Price has not traded below the two key hourly moving averages in over two weeks so this will be a significant break.
Hold a move below that and 1.1700 will be called into question. Do take note that there are large expiries sitting at the figure level rolling off today. Although, with month-end flows also dictating play it could make for an interesting session ahead.