Dollar rebounds as stocks move back toward unchanged

Sellers covering.

The fears of a stock sell off has subsided with the major indices moving back toward unchanged and with the recovery, the dollar is too moving back up.

The EURUSD has moved back below the 100 bar MA on the 5-minute chart and corrected about 50% of the trading range today. The pair is still up on the day and above the 1.2000 level and the 200 bar MA (green line in the chart above) at 1.2004. A move below that level will turn the bias even more negative. The technical picture is a bit more neutral.

The USDJPY moved above the 100 and then 200 bar MA on the 5- minute chart and that took some of the bearish bias out of the USDJPY. The 109.00 area may provide some cause for pause. The London session high reached 108.96.

A positive for the pair is the low today sniffed the 2017 low at 108.12 (low reached 108.248 - see earlier post). That may give buyers the idea that the low is in place. Watch for support at 200 bar MA on the 5-minute at 108.67 as close support/risk if that is the case.

The USDCHF fell below the 2016 lwo at 0.9444 and the July low at 0.9438. That should have sent the USDCHF tumbling lower. The low reached 0.9427 and started to recover. If there is no flight to safety, the USDCHF can recover.

Looking at the 5-minute , the pair is above the 100 bar MA at 0.94579 but it is still below the 200 bar MA at 0.94907. That level also corresponds with the 50% of the move down from the high right before the opening today (see chart below). Get above that level is the next hurdle if the buyers try to build off the failed break and less flight to safety.

The USDCAD is making a break above its 100 hour MA at 1.2508 currently and above the close from yesterday at 1.2505 (high traded to 1.25184 - see prior post).

Buyers are more making another run of it. The first break above the 100 hour MA earlier today failed.

The NZDUSD is moving back lower after moving above the 100 bar MA on the 4-hour chart at 0.72839. The pair is down retesting the 200 hour MA at 07264. That MA was broken in the London session and raced higher.