The initial reactions in the market were for the US dollar to move higher, yields to move higher, and stocks to come off a bit.
EURUSD: The EURUSD moved from around 1.0725 through the 200 hour moving average 1.0702 and down to the 100 hour moving average 1.06749. The low price reached just below the 100 hour moving average at 1.0673 before bouncing. It currently trades at 1.0688. Resistance now at the 200 hour moving average at 1.0704. A break below the 100 hour moving average 1.06749 would increase the bearish bias.
USDJPY: The USDJPY will back above its 100 hour moving average at 147.700, and above a swing area up to 147.867 and the high from last week near 147.94. The high prices tracking toward the high from earlier in the day at 148.16. The current price is trading at 148.07, just below that high. A move above the high from earlier in the day would have traders targeting a topside trendline on the hourly chart near 148.307. Close risk is now 147.94 and below that the 100 hour moving average at 147.70.
Looking at the US at that market at 2:15 PM ET:
- 2 year yield moved from 5.06% to 5.124%
- 5 year yield moved from 4.47% to 4.524%
- 10-year yield moved from 4.321% to 4.346%
- 30-year yield moved from 4.394% to 4.3977%
Looking at the US stock market at 2:19 PM ET:
- The Dow Industrial Average move from up to 203.23 points to up 136.36 points currently
- The S&P index moved from up 8.68 points to -3.98 points currently
- The NASDAQ index moved from -13.75 points to -55.26 points currently
This article was written by Greg Michalowski at www.forexlive.com. Source