USD falls continues
The USD has continued to fall, and the AUSUSD is not immune. It is trading at the highs for the day and away from its 200 hour MA (green line) at 0.6900 level. The next target is up a the 0.6932-36 which is home to a number of swing levels going back to May 14th.
Held the 100 hour MA in the London session.
The EURUSD moved sharply higher yesterday after making a new year to date low at 1.11064 (vs 1.1109 previous low). The 3 pip break, was not what sellers were really looking for, Markit PMI was much weaker, and the squeeze higher was on (lower dollar).
Moves to highest level since January 21, 2019
The official resignation of PM May has not swayed the EURGBP too much. The pairs is up on the day. If the pair closes higher (closes at 0.8830) it would be the 15 straight day higher. On Wednesday the pair moved above the 200 day MA (currently at 0.87853). On May 15, the pair moved above its 100 day MA (blue line) at 0.86751.
A little weaker data tilts the pair lower.
The USDJPY is trading in an up and down trading range today in a narrow 29 pips.
At the highs, the pair has been able t stay below the 38.2% and other swing levels (and a broken trend line) all in the 109.769 to 109.798 area.
Stocks higher on the day
As North American traders enter on Friday, the JPY is the strongest of the major currencies, and the JPY is the weakest. Stocks are rebounding today which has some of the risk off flows being reversed today. The GBP is mixed after PM finally announced the concrete plans for her resignation. The USD is lower but with modest changes vs many of the pairs (the USDs change is less than 0.1% vs EUR, GBP, JPY, CHF and AUD)
Cable now trades near session highs around 1.2715
Expect plenty of this volatility to come about for the pound over the next month of trading as the focus now turns towards the Tory leadership contest and who will succeed May as prime minister. May's announcement earlier confirms that she will resign as Tory leader on 7 June but will stay on as caretaker prime minister until a new leader is elected.
GBP/USD moves towards a test of the 100-hour moving average again
The pair touches a high of 1.2688 on the session and is closing in on a test of the 100-hour MA (red line) @ 1.2691. Buyers managed to crack that level earlier this week after May delivered her WAB but failed to hold on to any momentum and fell to fresh four-month lows after.
The dollar is losing some ground in early trades in Europe
EUR/USD is now knocking on the door of breaking above the 1.1200 handle as buyers exert further near-term control after a resurgence in overnight trading. Price is now contending with offers around 1.1200 as well as resistance at the 61.8 retracement level @ 1.1204.
Down $3.51 or 5.71%
Technically, the price fell below its 200 day MA at $60.44 today. Today was the 1st close below that moving average since April 1. In May there has been a number of tests of that moving average, but no closes below.
The low reached 2.2922% today
The fall in stocks and concerns about global growth has helped to push the yield on the 10 year note to a low of 2.2922% today. That is the lowest rate since October 2017.
The squeeze continues in the EURUSD. Tests high from yesterday
The EURUSD has moved toward the high from yestreday at 1.11797, AND the falling 200 hour MA not far from that level at 1.11816. The 50% of the move down from the May 13 high comes in at 1.11847. Safe to say, the pair is running into a cluster of resistance that extends from 1.11797 to 1.1187 (high from Tuesday's trading).
PMI data in Japan, Europe and US not that great
The PMI data out of Japan, Europe and the US was admittedly not that great today. There was hope that the global headwinds were abating. The data today weakens that view.
Key test for the pairs as they squeeze off lows
AUDUSD is up testing the 100 hour MA and trend line after the floor held support at the lows.
For the NZUSDU it is testing its 100 hour MA at 0.6512 as well.
New YTD lows failed. PMI data, pressured the USD. Shorts covered
The EURUSD has clawed its way back to unchanged (now higher) on the day after being down up to 43 pips on the day just a hour or so ago.