In the morning forex kickstart video, I outline the technicals that are driving 3 of the major currency pairs – the EURUSD, the GBPUSD, and the USDJPY.
EURUSD: The EURUSD is trading above and below its 100-day moving average for the 2nd consecutive day at 1.0821. Also in play is a 38.2% retracement of the move-up from the October low at 1.08252. That area will be a barometer for both buyers and sellers going forward. On the downside, the 100-day moving average and 50% retracement come in at 1.0774 and 1.0766 respectively. Those would be targets on more selling. On the top side, there is a swing area targeted above at 1.0878 to 1.0887. Getting above that area would add to the bullish bias.
USDJPY: The 100-day moving average at 147.327 is acting as resistance and trading today. Staying below that level keeps the sellers more control. On the downside, the 38.2% retracement of the move-up from the July low comes in at 146.304. A move below that level increases the bearish bias from a technical perspective. With the price remaining below its 100-day moving average, the sellers remain more in control.
GBPUSD: The hourly moving average in the GBPUSD is defining a floor between 1.2589 and 1.2602. The low price today reached just ahead of that level and has bounced back higher. Yesterday the lows stalled against the high of that swing area as well. On the top side the 200-hour moving average at 1.26335 and the 100 hour moving average at 1.26582 will be needed to broken to increase the bullish bias from a technical perspective.
This article was written by Greg Michalowski at www.forexlive.com. Source