The JPY is the strongest while the NZD is the weakest as NA trader enter

Technical Analysis

Author: Greg Michalowski | forex

The USD is stronger as the NA session begins

As the North American session begins, the JPY is the strongest, while the NZD is the weakest as NA traders enter for the day.  The USD is stronger with a only a small decline vs the JPY and a small gain vs the GBP.


The ranges for the day vs the 22 day averages (about a month of trading) are decent but most are below that average with the NY session ahead.  The EURJPY is trading near the low for the day as is the EURUSD. For the EURUSD it is down testing the low from yesterday near the 38.2% at 1.1402 and the 100 hour MA at 1.1395 - key support for the pair. 


In other markets:
  • Spot gold is near unchanged at $1260
  • WTI crude oil is down -$0.68 or -1.50% at $45.17. There is no bounce in the oil market yet. The price fell below the 61.8% of the move up from 2016 low at $45.57.  Dip buyers throw in the towel.
  • Bitcoin on Coinbase is up $56 and above $4000 at $4052.  The high reached $4162. The low $3896.
The US futures are implying a positive open after lower levels earlier.
  • Dow, +65 points
  • S&P, +6 points
  • Nasdaq, +26 points
In the European market, indices are mostly lower:
  • German Dax, -0.2%
  • France's CAC -0.3%
  • UK FTSE, unchanged
  • Spain's Ibex -0.67%
  • Italy's FTSE MIB -1.1%
In the US debt market, yield are lower with the long end falling the most (30 year is down -3.9 bps).

The 10 year benchmark European yields are trading higher.

There is a lot of data on what is the last big push before the Christmas week:
  • US Durables
  • US GDP
  • US PCE
  • Canada Retail sales
  • Canada GDP
It is triple witching day in the stocks which can create volatility, and the fight for the border wall with the President threatening a "long shutdown" without funding in the budget.  
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