Nasdaq leads the way lower
The major US stock indices are going out near/at session lows. The S&P index is disappointed that it could not remain above the 3000 level. The Dow was up 120 points at the highs.
Retracing the fall from yesterday
The USDJPY scooted to - and eventually back above - the swing lows from June 28 and July 3rd at the 107.53-557 on the Fed Williams retraction. Later in the session, traders based against that level on a test (see red circle 4). That area is back to being support for the USDJPY. Stay above is more bullish. Move below is more bearish.
Dollar buying sends the pair back below and away from MAs
The EURUSD shot higher yesterday but left the highs from July 11 and July 15 and a meaningful break of the 200 bar MA on the 4-hour chart to be broken. Sellers leaned against the area.
Tests 38.2% and 1.3100 level
THe price has moved back above the 100 bar MA on the 4-hour chartt at 1.30775 and above the highs for the week. The pair is testing the 38.2% of the move down from the June 21 high (intermediate recent swing high) and the 1.31000 level (now breaking as I type). That yellow area is now close support for the pair.
EUR/USD slips to a low of 1.1238, tests key hourly moving averages
Price moved lower following a WSJ interview (on 11 July) with Fed dove James Bullard was published, headlining that Bullard did not view that a cut beyond 25 bps is warranted ahead of the 31 July meeting decision.
EUR/USD trades in a ~90 pips range over the past two weeks
The pair is holding lower on the day as the dollar recoups some of its losses from yesterday's trading, with the low having hit 1.1241 and testing key near-term support levels in the form of the 100-hour MA (red line) and the 200-hour MA (blue line) earlier.
The pound is also losing a little bit of ground to start the session
And that is seeing cable move to a session low of 1.2515 as sellers are starting to try and gather more momentum for a move back towards the downside. Currently, price is running into some minor support around the 23.6 retracement level @ 1.2517.
Dow ekes out a small gain at the close. S&P index almost makes it to 3K but falls short
The major US stock indices of closing the day with gains. The Dow eked out a small gain at the close. The S&P index was the largest percentage gainer, reaching a high of 2998.28, just short of the 3000 level.
USD at lows vs ALL major currencies
The USD fall continues.
Looking at the pip changes vs the major pairs, the USD is at the session extremes for all the pairs. The GBPUSD is the biggest mover, up 116 pips.
Takes out 2019 highs
The price of gold moved to a new 2019 high and in the processs is trading at the highest level since May 2013. The precious metal will now have traders targeting a 50% retracement of the move down from the 2011 high price of $1921.17 at the $1483.83 level (see chart below).
Dollar lower. Stocks higher, Yields lower. Gold higher.
The dollar has tumbled after those comments from Feds Williams.
Remember, the Fed goes dark until the July 31st meeting at the end of business tomorrow. As a result, today's comments from the vice-chairman are purposeful and are more dovish than his prior comments from July 11th.
Is this THE bullish push that will get the contract out of the up and down range
The price of gold moved lower into the NY session, but then rebounded higher. A lower dollar helped, but also a contributor to the run higher was the holding above the 100 hour MA (blue line in the chart below). The 100 hour MA currently comes in at $1414.29. The low today reached $1414.73. At the time of the test, the 100 hour MA was at $1413.60. The price got close. Buyers leaned against support on the dip, and the sellers turned more to buyers pushing the price up.
But not running so be careful
The GBPUSD is trying to push above its 100 and 200 hour MA.
The 200 hour MA stalled the rally earlier in the day but backed off. After a modest decline, the pair stall at the 100 bar MA on the 5 minute and 38.2% retracement, the pair moved back higher. The high extended to new highs and above the 200 hour MA.
10 year benchmark interest rates are also lower
The major European stock indicesare closed and showing losses for the day. The provisional closes are showing
In the benchmark 10 year notes, yields are also lower but off the lower extremes.