Kickstart your FX trading with a technical look at the 3 major currency pairs

The USD moved higher yesterday helped by the stronger CPI data that sent yields surging to the upside. That run in yields has slowed a bit, but lower inflation data in the UK has helped to push the GBPUSD lower and below key support at the 200-day MA (close risk level for traders) at 1.25625. The price is also below the 1.2602-13 swing level that defined the low of the swing area that confined the pair for part of December and all of January. Staying below that area is a more conservative bias level for buyers and sellers.

For the EURUSD, the pair has traded up and down and up again but in the process stayed below a close resistance at 1.0723. Staying below that level would keep the sellers firmly in control. ON the downside, the next key target area comes in between 1.0655 to 1.0675.

The USDJPY moved higher yesterday and briefly moved above a swing area near 150.75 but stalled at 150.879. The price rotated lower but modestly lower, and remains above lower support near 150.039 to 150.117. A move above 150.75 would give the buyers more confidence (on the 2nd break) and SHOULD open the upside for more momentum. Key barometer for traders in the short term today to keep the bullish run going.

This article was written by Greg Michalowski at Source