Stocks rocket higher
The Fed came in and threw "all but the kitchen sink in" (they did not say they were buying ETFs or stocks). The Dow was down about 900 points over night. It is implying a gain of 417 currently (and changing rapidly). That is the good news. The not so good news is the uncertainty from the virus and the economic impact and implications going forward. However, the Fed, through the banks, continue to open up the spigots to provide liquidity.
The dollar has moved lower on the news:
EURUSD:
The EURUSD has shot to new session highs at 1.0790. The next upside target is the swing low from March 18. The price moved above that level on Friday to a high of 1.0830. The falling 100 hour MA is currently at 1.08276, near that high from Friday. Get above each and the price will target the 38.2% at 1.0866 (from the March 16 high). That was the last time the price seriously tested the 100 hour MA. The 50% of the same move comes in at 1.09366.
USDPY
The USDJPY has moved down to test a lower trend line at 109.71. The 38.2% of the move up from the March 18 low comes in 109.683. The low reached 109.80 but has bounced back higher as traders rethink, the move in this currency. The current price is currently at 110.279.
Stocks are higher and that tends to support the USDJPY but the price action of late has been into the USD despite the falling stocks. It is tricky currency, but what we know technically is the trend line at 109.71 and the 38.2% nearby at 109.683 need to be broken to hurt the technical bias.
