100 and 200 hour MA are converged below.
The GBPUSD is trading near midrange in an up and down price action today (midpoint is 1.2138).
The high today stalled short of the high from Friday and a swing area at 1.21749 to 1.21901. The high could only get to 1.2172. The fall from the high stalled just ahead of the 200 hour MA at 1.2102 (the low reached 1.2104).
Nasdaq leads the indices on the day. Dow lags
The major US stock indices are ending the session with solid gains but off the session highs. The indices opened higher and remained higher on the back of the Trump administration talking up the economy and more Fed criticism (and calls for sharply lower rates ....i.e. Pres. Trump wants 100 bps lower). The Trump Administration also extended its reprieve on penalties for doing business with Huawei which gave a boost to stocks.
USD/JPY touches a high of 106.66 on the day
The pair is breaking above near-term resistance close to 106.50 and is closing in on a test of the 38.2 retracment level @ 106.68 at the moment. The jump higher comes amid a firmer dollar and weaker yen amid higher Treasury yields on the session.
EUR/GBP climbs to a high of 0.9150 as the pound erases earlier gains
Of note, price is appearing to find a base just above the 0.9100 handle after the move to the downside last week. In turn, price is climbing back up now and is threatening to challenge a move back above near-term resistance close to 0.9150.
The pound gains some ground in early morning trades
Price touches a high of 1.2173 on the session as the pound stays firm since the end of last week. However, key near-term resistance levels are still at play nearby.
EUR/USD trades narrowly close to 1.1100 to start the week
The technical picture is very much but this time price is just under the 1.1100 handle instead of holding just above it. Sellers managed a downside move towards the end of last week but ran into swing region support around 1.1070-80.
Major indices close up 1.2% or better
The major US indices are closing with provisional gains of 1.2% or better.
The numbers are showing
- The S&P index rose 41.12 points or 1.44% at 2888.71
For the week, despite the solid gains today, the major indices are ending the week with losses (but it could have been worse).
NASDAQ index down only -0.69% on the week. S&P index -0.94%. Both were down over -3% at the lows for the week
The Nasdaq has ticked to a new session high and is down only 0.69% on the week. At the lows, the Nasdaq fell -3.06% from the close last week at 7959.84. The price just reached a new session high at 7905.35.
New session lows for USDCAD
For the week, the low was reached on Tuesday at 1.31839. The high was reached at 1.33381 yesterday. That fell short of the August high from August 7 at 1.33437 by about 5 pips and set the stage for the move lower.
Major indices all up over 1%
The US major stock indices are all trading above 1% on the day:
Looking at the daily charts of each, the price action this week took the price below the hundred day moving averages, but prices have been able to stay above lower 200 day MAs as well. We currently trade between those technical levels in each.
Trading consolidates in the AUDUSD
The AUDUSD has wandered up and down in trading today. The early move at the start of the session stalled at the 100 hour MA, the price moved through the high from yesterday to 0.6794, but stayed well below the highs for the week (at 0.6808 and 0.6817). The failure to extend above the high has now led to wander back toward the 100 and 200 hour MAs at 0.6770-73 area.
Tests end of July/early August swing levels.
The EURUSD is lower today. The GBPUSD is higher. Those pairs are moving in opposite direction to the USD. The algebra of that equation points to a lower EURGBP.
Moves away from 1.1100 level
Yesterday I spoke to the 1.1100-09 area (). Those levels were lows from April, May and July. The price moved below those levels at the end of July and early August on the way to the 2019 low at 1.10265 but recovered back to 1.12489.
Tests 100 bar MA on 4-hour chart as well
Drilling to the 5 minute chart below, the pair has not had much of a breather as it trended higher. So there is some 'trend day' tendencies traders should be aware of. A lower trend line on the 5 minute chart comes in at 1.2156. The high from yesterday is at 1.21497. Those are close risk levels for the pair should resistance hold in the 1.2170-84 area and the price start to rotate lower.
The USD is mixed
The GBP has squeezed higher and trades higher vs all the major currencies today. The CHF is the weakest as "risk on" fears disipate for today. Stocks are higher. Bond yields WERE higher but the yields have come back to unchanged levels. Gold it lower. The global recession is off for now at least. The USD is mixed with gains and losses scattered amongst the pairs (dollar higher vs EUR, JPY, CHF and NZD and lower vs GBP, CAD, AUD)