EURUSD marches back higher. Equals yesterday’s high.

The EURUSD has taken the comments from Draghi in stride.  Although he sees considerable risk, he also sees stabilization and lauded the effects of the LTRO program which added liquidity in the banks at precisely the right time. As evidence is the bond yields declines in Italy and Spain.  Let’s face it, money goes to banks at 1%. Banks buy bonds. They do the QE for the ECB.   Yields come down.  If the ECB does not want to do QE, they don’t have too as long as they provide “free” liquidity.  Money will find it’s way and the market is taking the chance

So the EURUSD marches back above the 100 hour MA  at 1.2743) and to new day highs for the day.  The move higher has now equaled the high from yesterday and traders will now use that level as its next level to get through. Yesterday, the weeks  low at 1.2665 was taken out by 4 pips and the failure to move lower, started the move higher. Today, we are not making new highs for the week -that remains above at the 1.2817 – but the high from yesterday ceiling may not be ignored either.  Below look for support at 1.2751 to 1.2759.  A move beow 1.2743 (100 hour MA currently) will really frustrate.

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