In the kickstart video, I take a second look at the three major currency pairs – the EURUSD, USDJPY and GBPUSD.
For the EURUSD, it extends above its 38.2% retracement of the April trading range in the early hours of the Asian session, but could not sustain momentum and rotated to the downside. That retracement level comes at 1.0709 and would need to be breached to give the buyers more confidence.
The USDJPY did extend above the 155.00 level prior to the strong durable goods orders, but after reaching 155.16, quickly reversed back lower. It is currently trading at 154.93 back below the 155 level. If the price can extend above the 155 level and stay above that level there could be additional probing on the second break. Keeping markets contained is the Bank of Japan interest rate decision which will be announced on Friday.
The GBPUSD like the EURUSD extended briefly above its 38.2% retracement of the April trading range at 1.2455, but like the EURUSD rotated back to the downside. The price trading above and below its 200-hour moving average in the European session at 1.2428. There is a swing area between 1.2403 and 1.24257 which is also providing some support, and will be a barometer for buyers and sellers going forward. Ultimately if the price is going to move higher, it needs to get and stay above the 38.2% retracement at 1.2455.
This article was written by Greg Michalowski at www.forexlive.com. Source