FX Kickstart: Major Pairs Stalled in “Non-Trending” Ranges
The US Dollar is starting the North American session on a mixed note. While the Greenback is lower against the Yen, it has found some footing against the Euro and Pound. Greg Michalowski highlights a market currently lacking a clear trend, with price action largely dictated by key hourly moving averages and established swing zones.
EURUSD: The Battle for the 100-Hour MA
The Euro is caught in a tug-of-war as sellers attempt to keep the price below the 100-hour moving average.
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Support: A critical “floor” exists in the swing area between 1.1765 and 1.1778. Buyers have consistently defended this zone.
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Resistance: The falling 200-hour moving average remains the primary hurdle for bulls.
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Outlook: Until the price can break and sustain a move outside this range, the bias remains neutral-to-bearish as it stays below its short-term averages.
USDJPY: Accelerating Past Resistance
Following volatility sparked by the Bank of Japan and comments from the Prime Minister, USDJPY is showing signs of upside momentum.
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Key Pivot: The area between 156.20 and 156.28 is the primary “risk-defining” level. Staying above is more positive/bullish.
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Technical Shift: The pair recently broke above a top-side trendline, suggesting an acceleration of the move toward the February highs.
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Other Support: The 61.8% retracement level provided a solid base during the recent consolidation. That level comes in at 155.592
GBPUSD: Trapped Between Averages
Cable is mimicking the EURUSD’s non-trending behavior, oscillating between its 100 and 200-hour moving averages.
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Resistance: A well-defined “yellow” swing zone and the 200-hour moving average are capping gains. A break above 1.3536 is needed to open the door for further upside.
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Support: The 100-hour moving average is currently acting as the near-term floor.
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Outlook: Traders are leaning against the edges of the weekly range (high vs. low). A clean break above 1.3536 or below the 100-hour MA will determine the next short-term “shove.”
Traders’ Note: In these “non-trending” environments, the lines are well-established. Traders are finding success “leaning” against these MAs for small pip gains, but the real move starts once the market breaks out of these confined ranges.
This article was written by Greg Michalowski at investinglive.com.