Yesterday, the US dollar fell, helped by lower US rates, and surging stock prices. Today those trends are reversed. The US dollar is higher, the US yields are higher, and US stocks are lower.
In the morning FX kickstart video, I take a look at the shift in the major currency pairs – the EURUSD, USDJPY and GBPUSD.
EURUSD: The EURUSD is lower on the day and in the process fell below its 100 hour moving average of 1.09398. However it found support against a key swing area near 1.0929. This level was broken yesterday but failed and that kick started the move to the upside from a technical perspective. Today the level is support. Staying above is more bullish in the short term. It would also help to stay above the 100-hour moving average at 1.09398.
USDJPY: The USDJPY fell in the early Asian session and in the process stalled ahead of the 200-day moving average at 143.313. That level remains a key barometer for buyers and sellers. Stay above and the buyers are still in play and hold an important card. Moving below and staying below the 200-hour moving average at 142.90 increases the bearish bias. On the top side, the 100-hour moving average at 144.184 needs to be broken to increase bullish bias. In the early US session, that level has been tested and so far held. Buyers and sellers are battling it out in this currency pair today.
GBPUSD: The GBPUSD moved lower in trading here today after topside resistance near 1.27715 held both yesterday and again in the Asian session today. The low price today did fall below its 200-hour moving average at 1.27113, but held above the rising 100-hour moving average at 1.2700. On a broad perspective, the 100 and 200-hour moving averages between 1.2700 and 1.2711 is support. On the topside get above the swing level at 1.2771 would be a break to the upside and have traders looking toward 1.2788 – 1.27994.
US stocks are set open lower with the:
- Dow Industrial Average -216 points
- S&P index -27 points
- Nasdaq index -123 points
Looking at the US yield curve:
- 2-year yield 4.374% +3.0 basis points
- 5-year yield 3.975% +1.9 basis points
- 10 year yield 4.019% +1.7 basis points
- 30-year yield 4.179% +0.5 basis points