The USD is stronger versus the three major currencies – the EURUSD, USDJPY and GBPUSD.
In this video take a look at both the daily and hourly charts to get our feet under us as we start the new trading year. What is the bias? What is the risk and the targets going forward in your trading today.
EURUSD: The EURUSD is moving lower and looking to approach a 50% update move down from the 2020 hi to the 2022 low on the daily chart. That level comes in at 1.0942. The current price is trading near 1.0952. Drilling to the hourly chart, the price today fell below it 200-hour moving average for the first time since December 13. That level is up at 1.10203. He also fell below the 38.2% retracement of the move up from the December 8 low. That comes in at 1.0980 and represents a close risk level for traders looking for more downside momentum. Having said that there is fairly decent support near the 50% midpoint of the move up from the December low at 1.0931. A level also corresponds with swing lows and swing highs going back to mid-December before basing on December 20 and moving to the December high at 1.11388. Watch that level for support buyers.
USDJPY: For the USDJPY the key move today is the break back above its 100 hour moving average at 141.71. On Friday, it held resistance against that moving average level increasing its importance from a technical perspective. The break above gives buyers some hope for further up the momentum. However, the price needs to get about it 200-hour moving average 142.366. The current price is trading at 142.12. So although buyers are making a play, they have more work to do to prove that they can take back more control.
GBPUSD: The GBPUSD is moving sharply lower after moving below its 100-hour moving average at 1.27143 and gathering head of steam over the last five or so trading hours. The momentum that outsiders was price down through the fit percent midpoint of the mobile probably December low the December high. That level comes in at 1.26629 and is down to testing the 61.8% retracement of the same move at 1.26243. It does seem to be some support buying against that level. Just below is another swing area between 1.2602 and 1.26137. So for the GBPUSD, there is some support after the fall to start the trading year. However, a break below the 6.8% retracement with momentum and the price below 1.2602260 is firmly in control.
This article was written by Greg Michalowski at www.forexlive.com. Source