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

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.

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.

Fed Harker remained in line with his view to keep rates steady for a while. On policy he said:

• At this
  point, I see the Fed holding steady this year. Next year is data-driven.
• If inflation comes down next
  year, could cut rates.
• Let the
  restrictive policy stance play out, should lower inflation.
• Policy is in
  a restrictive stance.
• We should
  keep stance restrictive for a while.

US yields are off their high levels:

• 2 years is at 4.988% up 3.6 basis points, but off its high yield of 5.027
• 10-year yield 4.209%, up 1.2 basis points, but off its high yield of 4.239%
• 30-year yield 4.284%, unchanged and off its high yield of 4.310%