A technical look at the forex market.

As the NY session comes toward the close, the US dollar is near the top of the table for the strongest currency of the day. It only sits behind the GBP.

The dollar gained the most vs the CHF, CAD and NZD, but the greenback also had solid gains against the EUR, AUD and JPY.

Below is a quick technical look at each of the major pairs:

EURUSD

The USD is up about 0.68% on the day vs. the EUR (EURUSD lower). The pair is seeing follow through selling after the rejection of the new year high yesterday.

Technically, the price has moved back below the the swing high from earlier in August at 1.1910. The low got close to the 2010 swing low at 1.1876. A move below that level will increase the bearish bias in the new trading day. On the daily chart, a lower trend line cuts across at 1.1770 area.

Drilling to the hourly chart, a move below the 1.1876 level will look next toward the 200 hour MA at 1.1851. A break below that will target 1.0805 where the 100 hour MA on the 4-hour chart is found.

If the 1.1876 level holds (or there is a reversal on a failure), the 100 hour MA at 1.19218 currently would muddy the technical waters (and could see a reversal back higher).

USDJPY

The USDJPY is up about 0.54% on the day. The price action today, saw the pair ratchet higher. The holding above the 109.77-819 level was a clue for buyers. That area is home to swing level This week and last week.

The move higher did ultimately run into resistance against the 200 bar MA on the 4-hour chart. That level comes in at 110.42. A move above that level will have traders looking toward the 38.2% of the move down from the July 11 high at 110.63 .Above that and the 110.94-111.00 and the 100 day MA at 111.175 will be eyed.

A rotation lower could see a revisit of the 109.76-82 area and/or the 100 bar MA on the 4-hour chart at 109.602.

GBPUSD

The USD is ending the day about where it began. Yesterday it closed at 1.2917. The price is currently trading at 1.2920.

Technically,

  • The 100 bar MA on the 4-hour chart is at 1.29065
  • The 100 day MA is at 1.2900 and
  • The 100 hour MA is at 1.2896 (and moving higher).

That area will be the bullish above/bearish below barometer for the pair.

USDCHF

The USDCHF rose by 0.85%. Higher stocks and less flight to safety flows contributed to a more bullish technical picture.

Looking at the hourly chart, the pair is closing near the highs and also near the next target at the 100 bar MA on the 4-hour chart at 0.9640. Below, the pair had based against the 0.9582-86, moved above the 200 hour MA at 0.9610 and the 200 bar MA on the 4-hour chart at 0.96245. Look for the 200 bar MAs to provide support in the new trading day.

On a break above the 0.9640 the high from last week comes in at 0.96977 (call it 0.9700). The 100 day MA comes in at 0.97287. Remember that level. The price of the USDCHF has not traded above the 100 day MA since May 15, 2017.

USDCAD

The USDCAD based at its 100 hour MA earlier in the day (blue line down at 1.2509 currently). THe price has marched above the:

  • 38.2% at 1.25688
  • 200 bar MA on 4-hour at 1.25911
  • 50% at 1.26086
  • 100 bar MA on 4-hour at 1.26156

In the new day, stay above the 1.2591-98 area, and the bulls remain firmly in control.

NZDUSD

The NZDUSD fell sharply today and in the process moved to test the low from August at 07191, the 50% of the move up from the May low at 0.71874. The 100 day MA comes in at 0.7181. The low today reached 0.7188.

Into the day, that area between 0.7181 and 0.7191 is support. A break and a move to the 200 day MA at 0.71296 can not be ruled out...