IN the kickstart video above for October 9, I take a look at three the major currency pairs, the EURUSD, USDJPY and GBPUSD. As a bonus today, I also take a technical look at the NZDUSD after the Reserve Bank of New Zealand cut rates by 50 basis points.
EURUSD: The EURUSD yesterday moved up to test the 50% midpoint of the move up from the August 1 low at 1.09954, and found willing sellers. Since then the price has rotated down to test a key area support area at 1.09419 and 1.09490. The low price reached 1.09503 just above the high of that swing area. The 61.8% retracement of the move up from the August 1 low is also in that area at 1.0944. Going forward that is a key support level along with the 100-day moving average of 1.0932 that if broken would increase the bearish bias. Of course, buyers can also lean against the level and hope for a rotation back toward the 50% level above at 1.0995 (with a stop below 1.09419).
USDJPY: The USDJPY yesterday fell down to test a key support level from last Friday’s unemployment day. That support came near 147.30. The holding of that level has led to a rotation higher and back above the 38.2% of the move down from the July high. That level comes in at 148.116. Since breaking above, the buyers have leaned against that level in the early European session today and new highs are being made in the early US session. On the topside, the high price from mid-August comes in at 149.356. Just ahead of that is the high price from Monday at 149.12. Buyers in control
GBPUSD:The GBPUSD yesterday moved higher and found resistance near the low of a swing area at 1.31145. Sellers leaned against the resistance and rotated the price back down to test the low from Monday and the 50% midpoint at 1.30488. The low price today reached a 1.30546 about six pips short of the 50% midpoint level. Getting below that level is needed to increase the bearish bias going forward. Absent that, and the price is ping-pong between the resistance above at 1.3114 and the support at 1.30488.
NZDUSD: The NZDUSD fell below a cluster of key technical levels defined by the 100-day moving average of 0.61216, the 50% midpoint of the move up from the August low at 0.6113, and the 200 day moving average at 0.60966. That is a key technical area today and going forward as well. Going forward now, staying below the 200-day moving average keeps the sellers more control. On the downside, there’s support near 0.60627 followed by the 61.8% retracement at 0.60509.