Forex news for North American trading on October 20, 2016

ECB Draghi sure sent the EURUSD on a wild ride. First there was a headline that they did not talk about extending QE. Fast break higher to a high of 1.1038. Then he said that a sudden stop in QE isn't in anybody's mind. Fast break to the downside. The low extended to just above the July 2016 low at 1.0910 (low reached 1.0915). A break of that level and the pair will be trading at the lowest level since March 2016.

The USDJPY tested the 100 day MA yesterday and found support buyers. Today with the better tone in the USD, the pair moved higher. Let's face it, the pair is in the middle of a 147 pip trading range from 103.16 to 104.63 that has confined the pair over the last 7 trading days. The midpoint is 103.89 and we are trading at 103.99 - just 10 pips away. Nevertheless being above the 50% and also above the 100 and 200 hour MA is more bullish.

The AUD is the weakest currency today after weaker than expected employment data and the overall stronger USD. The pair retraced close to 50% of the recent move higher (from the October 13th low to the high today) at 0.76198. The 200 hour MA is at 0.7612 and rising. That is the support that will need to be broken if the pair is going lower. Resistance comes in at 0.7654 in the new trading day (100 hour MA).

The GBPUSD is lower on the day but off the lows at 1.2209 (also equals the 61.8% of the move up form the October 17 low). The 100 and 200 hour MA are converged at 1.2243 and that will be a bullish above/bearish below line for today's trading

In other markets today:

  • Spot gold down $3 to $1266
  • US 10 year yield up 1 basis point to 1.7521%
  • WTI crude oil down -$1.17 to $50.43
  • S&P spot index down -0.14% to 2141.34

Looking the strongest and weakest currencies near the end of the trading day shows the USD is the winner while the AUD is the weakest.

It's Friday in the Asian Pacific region of the world. That means activity can be choppy as traders square up for the weekend. It also means, I can wish you all a happy and healthy weekend and thank you for your support.