New extremes for the major pairs
The dollar is breaking higher after the better than expected US housing data. Also some of the pairs are making key breaks.
For the EURUSD we are moving below a low floor area at the 1.1023 level Stay below now keeps the sellers firmly in control. The 1.1000 low from July 8th is the next target. The EURUSD has been in a narrow trading range for 16 days (184 pips on the wide/the inside range where most of the trading has taken place is 136 pips). It is time for the sellers to take charge if they want to get this pair away from this non trending range.
The GBPUSD has had a bigger trading range today to the downside, but it has fallen below the 200 hour MA and the 50% retracement at the 1.3144 and 1.3135 respectively. Stay below those levels keeps the sellers firmly in control.
For the USDJPY (new highs since June 24), it is trying to get and stay above a resistance area defined by 106.23-43. The next target is the 61.8% of the move down from the May 30 high, to the BRexit low. That level comes in at 106.698.
