Bring back the September tightening
The 2Q GDP came in much better at 3.7% vs. 3.2%. Yes much gain came from inventories, which could subtract from 3Q but..... Initial claims dipped to 271K from 277K. Not much difference.
The dollar has moved higher off the data. Stocks are also higher.
EURUSD fell below the 200 hour moving average at 1.1274 (this is now resistance). The next targets come in at 1.1240 and 1.1213 – 15. The 1.1213-15 area is high prices going back to July 10 and August 12
GBPUSD is testing the 38.2% of the move up from the April low (at 1.5406) and the 1.5400 level the 200 day MA at the 1.5368 level. The pair has moved away from the 100 day MA (blue line in the chart below) and the broken trend line as well. Trades between the "goal posts" as defined by the 100 and 200 day MA.
USDJPY is testing the 200 day MA (green line in the chart below) at 120.70. The 50% of the move down from the August high comes in at the 120.682. Key level. A move above will next target 120.83 and then the underside of the broken trend line at the 121.58 area.
