Kickstart your FX trading date with a technical look at the EURUSD, USDJPY and GBPUSD:
- EURUSD: The EURUSD had an up-and-down trading day yesterday with the move to the upside stalling near its 100-hour moving average at 1.08692. In the Asian-Pacific session today, the price moved sideways with 2 attempts above that moving average level with little success and momentum. Buyers turned to sellers in the early European session and have pushed lower over the last 6 or so trading hours. The early US trading saw better initial jobless claims and mixed durable goods but rates have moved higher helping to push the pair lower. The price is below a swing area between 1.0833 -1.0848. Staying below would be more bearish. On the downside, the 200-day moving average near 1.0800 is the next key target. Yesterday, the price stalled just ahead of that level to begin the snapback rally to the upside. Getting below would increase the bearish bias.
- USDJPY: The USDJPY is trading within a confined range over the last 9 or so trading days between 144.60 and 146.55. In between sits the 100 and 200-hour moving averages near 145.57. Near the low sits the 38.2% retracement of the August trading range at 144.624. The price decline yesterday sniffed below that level, but could not sustain momentum. The low price in the Asian-Pacific session today also tested that level but stalled. The subsequent rally through the European morning and into the US early trading has taken the price back above the aforementioned hourly moving averages and toward the 145.90 level. Getting and staying above that level would have traders targeting swing highs from Monday and Tuesday near 146.40. The high price last week reached 146.554. Buyers are more in control above the moving averages near 145.57ish. Staying above is more bullish in the short term/medium term as the consolidation continues in this pair, but prices also remain near 2023 highs. Waiting for a break outside the "red box".
- GBPUSD: The GBPUSD yesterday moved down and moved below is 100 day moving average at 1.2637 but stalled near swing lows over the last 2 weeks near 1.2615. The inability to get below those levels help to lead to a snapback rally which saw the price move toward its 200 hour and 100 hour moving averages (currently at 1.2722 and 1.2728). The price stalled between those moving averages yesterday and again today during the Asian-Pacific session. In the early European session, the price started to move back to the downside. As I type, the price has moved below the 100 day moving average 1.26374, but remains above the low from yesterday and last week near 1.2615. The low price just reached 1.26258. Moving below the 1.2615 level and then the low of the swing era going back in time at 1.25904 would increase the bearish bias. Conversely if the 1.2615 level cannot be breached because buyers are leaning (with stops below), you can't rule out another covering move back to the upside.
