EURUSD trading in a channel
Yesterday´s selloff on the equity markets prompted investors to dump riskier assets and invest into safe havens. Negative sentiment on the markets is driven by rising treasury yields in the US, which has negative effect on company shares. Investors sold out shares and bought American dollars against the Euro. The EURUSD fell from the 1.2250- 1.2280 resistance level (A) and is sitting on the 50 moving average. The pair is trading in an ascending trading channel on the 4 hourly chart and breaking below the 50 EMA it might fall to the lower boundary of the channel, which is converging with an intraday support level (B).
Should the bears push the course outside the channel, that would mean further dollar strengthening and testing previous lows on the way. On the other hand, if the Euro would gain back on strength, it could push the pair back towards the upper boundary of the channel right at resistance level A.