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EUR/USD back inside the tramlines again

The spurious move to a high of 1.0827 yesterday afternoon was covered here, when the EUR/USD initially spiked higher on the US CPI data. That high was just a fraction above its 200 day moving average, then in place at 1.0825 and I stated at the time, that this did not constitute a break above the level. Well, of course it subsequently fell back and was unable to reclaim the 1.08 handle ahead of the US close. The EUR/USD ended the US session at 1.0794. That 200 day moving average is in place today at 1.0826. A few days back I noted the EUR/USD was the meat in the sandwich between its 100 and 200 day moving averages. Well, guess what? It is back in that mode so far today. The 100 day moving average is in place today at 1.0755. The range seen so far has been covered by 1.0781 to 1.0800. Of course that US Fed policy decision is very much on the radar for the Euro this evening and it is possible that those moving averages will cap the price action until we see just what the Fed has to offer, be that in action or words. The EUR/USD is currently trading at 1.0783

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