The USD tumbles lower after softer data on inflation/employment

The USD is tumbling lower as major pairs make a break for it. The USD is now the weakest of the major currencies Currencies Currencies are a typically a form of money in wide circulation, being the primary medium of exchange with respect to buying and selling goods and services. These are often issued by a specific government or collection of governments, by way of paper notes and coins. Other forms of currencies include previous metals such as gold and silver, and digital currencies such as Bitcoin. Currencies serve as a backbone of the country’s or countries’ economy, due to the perception of value held by the popu Currencies are a typically a form of money in wide circulation, being the primary medium of exchange with respect to buying and selling goods and services. These are often issued by a specific government or collection of governments, by way of paper notes and coins. Other forms of currencies include previous metals such as gold and silver, and digital currencies such as Bitcoin. Currencies serve as a backbone of the country’s or countries’ economy, due to the perception of value held by the popu Read this Term. The AUD remains the strongest.

Looking at some of the major pairs.

• EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be Read this Term is trading at the highest level in over a year now after breaking above the February high at 1.10317. The pair is trading at 1.1062. It would now take a move below 1.10317 to hurt the bias in the short term. Absent that and the buyers remain in full control. The next target is up near 1.11316 on the daily chart below (see green numbered circles on the chart below).

• USDJPY is breaking back below the 200 hour MA at 137.506 and now breaking below a swing area between 132.19 and 132.27. The 50% midpoint of the move up from last week's low comes in at 132.314. Stay below the 200 hour MA keeps the bias more in the favor of the sellers from a technical perspective.

• GBPUSD is breaking to its highest level since June 2022 on its move above the the early April high at 1.25246. The high price reached 1.25367, but has backed off a bit and trades around the early April high. The GBP is the next weakest of the majors so it is having some apprehension. The price action in April has seen the pair move above and below a key swing area between 1.24228 to 1.2443. The waffling around that area is indicative of a market that is unsure at current levels. Nevertheless, the buyers remain more in control above that area now.

• USDCAD has broken below its 200 day MA at 1.33938. The last time the price of the USDCAD traded below the 200 day MA was back on August 11, 2022. Stay below keeps the sellers more in control. The next target area comes in near 1.3300 to 1.3320.

• AUDUSD: The AUD is the strongest of the major currencies and in the process has moved back above its 200 day moving average at 0.67442. Earlier this month, the price moved above those levels, but found sellers ahead of the 100 day moving average currently at 0.67995. The current price trades at 0.6769. The high price for the day is just above that at 0.6772. The 38.2% retracement of the move down from the 2023 hi to the March low comes in at 0.67905 just ahead of the 100 day moving average near 0.6800.