Kickstart the FX day for March 6 with a technical look at the EURUSD, USDJPY and GBPUSD

There is a lot of fundamental news today with the UK budget, Fed Chair Powell’s testimony on Capitol Hill, and the Bank of Canada interest-rate decision highlighting the calendar of events. All of which has the opportunity to upset the apple cart (i.e the market).

Now, the dollar is mostly lower with the EURUSD breaking above its 38.2% retracement (with more momentum this time) at 1.0864. The next target is at the high from two weeks ago at 1.0887, and the 50% midpoint of the move down from the December high at 1.09165.

The USDJPY is showing some dollar weakness as well, with the pair breaking below the low of a swing area at 149.70. That is now close risk for sellers looking for more downside. The low from last week, and the rising 200-bar moving average on the 4-hour chart comes in near 149.15. Break below that level and traders look toward the 38.2% retracement of the move-up from the February low. That level comes in at 148.966.

The GBPUSD is moving higher (USD lower), and moves more in the upper half of the 1.2594 – 1.2800 up-and-down consolidation range. It also is moving above the 61.8% retracement of the move down from the December high to the February low at 1.2709. That is now close support. Yesterday the 50% of the same move held support near 1.2672 and gave the buyers the go-ahead to push to the upside.

This article was written by Greg Michalowski at Source