A run down of the majors
EURUSD
- Marched higher from 1.1146 to 1.1205 (in about 2 hours).
- The close from yesterday came in at 1.1201.
- The 200 hour MA was at 1.1196.
- The move above the 200 hour MA was the 9th separate in the last 2 trading days. It has been since August 28th for the last time above that MA line
- The largest break above the 200 hour MA has been 13 pips. This move was 8 or so pips
- The price is currently below the MA at 1.11966.
- Support at 1.11757-82 now
USDJPY
For the USDJPY all was progressing nicely. The corrections off the legs higher were shallow. (see post here). The price was tracking above the 100 bar MA on the 5 minute chart along with a trendline support line. However, when the price fell below the 100 bar moving average and the trend line at the 120.90 level (see chart below), buyers took some profit, and sellers looking to make a few bucks on the back of weaker stocks, entered and pushed the pair lower.
The selling stalled at the 120.52 level – just short of the 120.49 days midpoint(see chart below). The 1 2041 level is the low price for the month of July
GBPUSD
The BOE meets tomorrow and the GBPUSD chopped around in trading today. There was a sharp fall lower after the IP and manufacturing data in the London morning session disappointed.
That fall, took the price below the 200 day MA at 1..53506 level ( green line in the chart above) by about 5 or so pips - but that was it.. That was also the low for the day although there was a second test/break of the 200 hour in the early hours of the NY session (only got one pip below the 2nd time). The price moved back down for a third sniff moving to within 2 pips of the MA line, but was stopped before having the opportunity to knock on the door.
The upside has been more limited for the GBPUSD (the price is well below the close from yesterday at the 1.5393 level). The range for the day is also well below the norm (58 pips vs 111 for the 22 day average).
