The markets are seeing a bit of a reversal.
In the US stock market , the major indices are now trading in positive territory and near highs for the day:
- Dow Industrial Average is up 153 points or 0.47%
- S&P index is up 13 points or 0.32%
- NASDAQ index is up 25 points or 0.22%
The US debt market, the yields have seen some move back to the upside as well
- two year yield is at 4.74%. It's a low yield reached 4.588%
- five year yield is at 4.05% after reaching a low of 3.928%
- 10 year yield is at 3.77% after reaching a low of 3.674%
- 30 year yield is at 3.749% after reaching a low 3.681%
in the US dollar, the greenback is also moving higher off of low levels.
EURUSD: The EURUSD moved above the high prices from Monday and Tuesday near 1.06936 on its way to a high of 1.07002 (call at 1.0700). The price is moved back down into the swing area between 1.0653 and 1.0668.
USDJPY:
The USDJPY tested a key swing target near the 38.2% between 134.068 and 134.151.
The prices bounced back higher and retests another swing area between 135.11 and 135.22. Sellers have leaned in that area so far with the price currently trading at 134.94. A move above 135.22 would have traders targeting the swing low from Monday's trade at 135.36. Move above that level and could see further upside probing on short covering.
GBPUSD:
The GBPUSD has rotated back to the downside and looks toward the 1.2050 area. Earlier today, the price broke above a downward sloping trendline and also that ceiling area (see red numbered circles). Momentum to the upside increased with the price extending above the 61.8% retracement in the process at 1.20906, and above the 1.2100 level up to a high price of 1.21127 (before rotating back to the downside).
A move back below the 1.2050 level with momentum (watch the 50% midpoint at 1.20355 as well), could see additional selling on the disappointment. The 100 day moving average comes in at 1.2009.
In days like today, things can whip around. Some key targets were reached. Related markets like stocks and bonds are also in play. Paying attention to the technicals is therefore important.