The EURUSD and the GBPUSD are making new lows and the USDJPY are trading to new highs as the USD gets bid at the start of the new week. What has the price action done to the technicals that are driving the currnecy pairs:
- EURUSD. The EURUSD closed just above its 100-day moving average at 1.09346 last week. In the Asian session, the price opened below that moving average and apart from a small push above the level in the European morning session, the price has been able to stay below that moving average. Going forward, that moving average will be a risk and bias-defining level for traders this week. Staying below is more bearish. On the downside, the pair is trading within a swing area between 1.0900 and 1.09126. Move below it and the 200 day moving average of 1.08735 will be targeted.
- USDJPY:For the USDJPY the 149.356 level was a high price going back to mid August. In trading last week, the price did move above that level reaching a high of 149.55 at one point before rotating back to the downside. On Friday, the price moved up toward the 149.356 level but was able to stay below that level. In trading today, the price has moved above the August high in the European morning session, and is extending those gains in the early US session. Going forward the 149.356 level will be a risk and bias defining level (today and for the week). Staying above it and traders will look toward the 50% midpoint of the move down from the July high to the September low at 150.757, followed by the near converged 100 and 200-day moving averages near 151.50 – 70 area. The 150.00 level will also be a natural level of resistance on more upside momentum today and going forward.
- GBPUSD: The GBPUSD is breaking below its 50% midpoint of the move up from the August low today September high. That level comes in at 1.3048. The current price is trading at 1.3036. The 50% midpoint will be a bias/risk defining level in the short-term today and going forward. Staying below is more bearish with the 1.3000 level as a target (near the September 11 low at 1.3001). Below that and the rising 100 day moving average comes in at 1.29454.
This article was written by Greg Michalowski at www.forexlive.com. Source