EUR/USD rebounds from a test of 200 week moving average and here is why

Earlier this afternoon the EUR/USD did briefly trade below its 200 week moving average, which was still in place at 1.1108. The Euro skidded to set a new 2026 low at 1.1105, but it has since rebounded. To be honest with you a couple of pips either side of such a long-term moving average is neither here nor there and we cannot consider that move as a break. 

Well, besides it has since rebounded back above 1.1140 just now and that has come as the ECB boss continue to debrief the press. She just said there was some talk of a move to raise interest rates today and clearly left open the door to that at the December meeting. It is that which has helped to lift the Euro and push Bunds lower. It has also just taken some heat out of the DAX, but for now that is still holding gains above the 26k handle. The EUR/USD is right now at 1.1137