IN the video above, I take a look at the 3 major currency pairs from a technical perspective to kickstart the US trading day.
The EURUSD and the GBPUSD have pushed higher in the last few hours of trading as the North American traders enter for the day. The price action is also moving away from support in the process.
In the wrap at the end of the US session, I wrote:
- EURUSD: The EURUSD had an up-and-down day with the price low bouncing off the 200-hour MA. That MA comes in at 1.04567 currently and will be a barometer for buyers and sellers in the new trading day. The price is trading at 1.0466 as the day works toward the close.
- USDJPY: The USDJPY fell below a swing area between 149.078 and 149.39. The low price reached 148.837, short of the December 3 swing low at 148.642. After bouncing higher and returning back into the swing area, there is a late day moved to the upside with the price currently trading at 149.66. Going into the new trading day, it would take a move back below the 149.078 level (the low of the swing area) to increase the bearish bias.
- GBPUSD: The GBPUSD also had an up-and-down trading day with the low price in the US session stalling just above the broken 38.2% retracement of the move down from the September 2024 high. That level comes in at 1.26076 and will be a key barometer going into the new trading day for buyers and sellers.
What happened?
For the EURUSD, the price held support in the Asian session but did dip below the rising 200 hour MA. What did not happen is the price stalled ahead of the low of a swing area at the 1.0453 (which was near the 200-hour MA at the close yesterday). That gave the buyers more comfort to push higher and they did. The price is trading near the high near 1.0500 to start the new day.
The USDJPY had a swing area between 149.078 and 149.39 as support. Also in play was the 50% of the move up from the September 2024 low within that area at 149.22. Both the swing area and the 50% held support at the lows today in the late Asian/early European session. On the topside, however, the 100 hour MA has held resistance at the highs. If the buyers are to take more control today, they need to get above that falling MA at 150.047 – and stay above – to increase the bullish bias. If they can’t do that the pressure on the 50% and swing area will likely remain. Buyers and sellers are battling.
For the GBPUSD the 38.2% retracement level was the key barometer for the pair coming into the trading day at 1.26076 and on the dip in the late Asian/early European session today, that level was tested and found support buyers. That gave the buyers the go-ahead to push higher. THe price is coming into the day and has moved above the 100-day MA at 1.26502. Buyers are making a play. The caution is the price moved above the 100 day MA on Friday and Monday too and failed. Can the buyers keep the momentum going today?