The USD is moving higher on flight to safety flows after the extreme violence in Isreal on the back of the terrorist attack by Hamas militants (and Iran). Thousands of civilian deaths and injuries have occurred. Israel has responded with a barrage of attacks on Gaza.
In this video, I outline the technical moves that have occurred as a result of the news
EURUSD:The EURUSD gapped lower on the weekend news on USD buying and in the process, the pair moved back down toward the 100 and 200-hour moving averages at 1.05187 and 1.05279 respectively. Although the 200-hour moving average was broken, the 100-hour moving average did hold support. Technically speaking, a break below the 100-hour moving average is needed to increase the bearish bias. Conversely staying above and the buyers are still in play. There is upside resistance up at 1.0551 – 1.05571 further upside momentum. Conversely, a break below the 100 hour moving average at 1.05187 opens the door for a swing area between 1.0483 and 1.0496. On Friday, the low price after the US jobs report found support buyers against the 1.0483 level and bounced sharply higher.
USDJPY: In contrast to some other currencies, the USD is NOT higher versus the JPY as the JPY can also be a safe haven in times of geopolitical risk. The USDJPY is modestly lower vs the close from Friday, but it's fall has also stalled between its 100 and 200-hour MAs at 148.98 and 149.23 respectively. Those MAs will be barometers for bullish and bearish. Moving below the 100-hour moving average at 148.99 would increase the bearish bias. Conversely, moving above the 200-hour moving average at 149.233 would increase the bullish bias
GBPUSD: Like the EURUSD, the GBPUSD has moved lower after the weekend geopolitical news out of Israel. The price has moved down testate swing area at 1.2159 – 1.2167, and the 200 and 100-hour moving averages at 1.2156 and 1.2151 respectively. Those moving averages and swing areas will be barometers for buyers and sellers today (and going forward). Moving below is more bearish with a swing area between 1.2105 and 1.21109 is the next downside target. Conversely staying above and traders would look toward the 38.2% retracement of the move down from the September 11 high at 1.22316.