In the morning kickstart video, I take a look at the 3 major currency pairs – the EURUSD, USDJPY and GBPUSD – and outline the technicals that are driving the pair. For each, they are making a break today. So understanding the new dynamics is important for your trading.
EURUSD: The EURUSD was trading in between its 100 and 200 hour moving averages near the close yesterday between 1.0947 and 1.09524. The price started to move lower in the Asian session and momentum to the downside beget more momentum to the downside, and that has continued with the pair moving below its 61.8% retracement other move up from the December low at 1.0882. The price also fell below a swing area going back to November between 1.0878 and 1.0894. The 1.0894 level is a close risk level for sellers now. Our downside the 200-day moving average 1.08462 is the next key target.
USDJPY: The USDJPY is moving to its highest level going back to December 7, and in the process is moving away from its 50% midpoint of the move down from the November 1 high. That level comes in at 146.07. Traders looking for more upside would not want to see the price move back below the 50% midpoint. On the topside the next major target comes against the 100-day moving average and 61.8% retracement of the move down from November 1. Both those levels come in at 147.45.
GBPUSD: The GBPUSD was trading between its 100 and 200 hour moving averages near close yesterday as well, in that moment and continued to the downside in the Asian and European sessions. The low-price extended to the 61.8% retracement of the move up from the December low at 1.2624 before finding some support. The 50% of the same move comes in at 1.26629 and will be either as close resistance intraday.
This article was written by Greg Michalowski at www.forexlive.com. Source