The trading week in the forex market is off to a slow start with modest trading ranges in the major currency pairs. In this video, I outline the key levels in play today and going forward for the EURUSD, USDJPY and GBPUSD and show why they are key.
EURUSD: The EURUSD is mired in a very narrow trading range today above and below a swing area between 1.0658 and 1.06669. On the top side, there is target resistance near 1.0687 followed by the 100 and 200 hour moving averages at 1.0697 and 1.0709 respectively. On the downside, the swing low going back to the end of May at 1.0635 was broken last week but only by a few pips to 1.06312. Those levels would need to be broken to increase the bearish bias going forward. If so the 38.2% retracement of the move up from the September 2022 low comes in at 1.06106.
USDJPY: The USDJPY bias at the price above a swing area between 147.73 and 147.867 in trading last week but only to a high of 147.945 before sellers stalled the rally. In trading today, the high price in the Asian session stalled against the high of that swing area, and wondered to the downside. For today if the price can stay below the 147.73 – 147.867, the rising 100 hour moving average at 147.424 and the 200 hour moving average at 147.277 would be the major downside targets to get to and through to increase the bearish bias. Below that the 147.00 level is a another swing area that stalled the fall on Tuesday, Wednesday and Thursday of last week's trading.
GBPUSD: The GBPUSD fell to a low today of 1.23695. In doing so it tested the swing low going back to June 5 at the same level. Buyers leaned in the price has rotated modestly to the upside. The high price rotated to 1.2409 before stalling. Technically, the 200 day moving average at 1.24333 represents a key level on the topside that if buyers are to take more control today and this week, they would need to get and stay above that moving average level. On the downside, breaking below the 1.23695 level would have traders looking toward the May 31 low at 1.23478. Below that the May 25 low at 1.2308 would be targeted.