Dollar trades at new day highs after data
The US durable goods report exceeded expectations on all fronts (even revisions) and that has given the dollar more of a boost. The dollar is reaching new highs against the EUR, GBP, JPY, and CHF. Stocks are higher and Treasury prices are moving lower with rates up 8.7 basis points (2 year) to 6.8 basis points (30 year).
The EURUSD has fallen below the 50% of the move up from the Aug 18 low at the 1.13638. The 200 day MA at 1.1323 is a key support target below. Resistance at the 1.1394 level now (low from yesterday).
For the GBPUSD the pair tests the low from August 17 at the 1.55616 and is finding some support buyers. There should be sellers near 1.5588 and 1.5605 (low from August 20) on corrective rallies.
The USDJPY took out the day highs at the 119.82 level and moved above a trend line at 119.85, but has since retreated back below. Look for a move above with more momentum to signal buyers are in control.
The better data - if accompanied by a steady/rising stock market - will have the on again/off again Fed pundits thinking "on" (that is rise sometime in 2015) - once again.
