The initial reaction off the US CPI data this morning was a dollar move to the downside. HMMMMM. However, that move was quickly reversed. In this video, I outline the technical levels that are in play for the three major currency pairs – the EURUSD, USDJPY, and GBPUSD.
EURUSD: The EURUSD moved above its 200-hour moving average 1.08136 and its 200-day moving average 1.08242 shortly after the CPI release, but then reversed lower. The low price has since moved back down to test the 100-hour moving average at 1.07728. Support buyers leaned against that level and pushed the price back higher. There is resistance near 1.0804 and then the 200-hour moving average 1.08136. On the downside, it would take a move below the 100 hour moving average to increase the bearish bias.
USDJPY: The USDJPY moved lower immediately after the CPI data and reached a low of 144.724 before snapping back to the upside. There is resistance against the broken 38.2% retracement of the move down from the November high to the December low. That level comes in at 145.559.
GBPUSD: Like the EURUSD, the GBPUSD initially moved higher and in the process broke above it 200-hour moving average at 1.26015. However, the price has since rotated back to the downside and back below is the 100-hour moving average at 1.2565. That is now close resistance intraday. The next target on the downside comes near the 38.2% retracement of the move up from the November 10 low. That level comes in at 1.2524.
This article was written by Greg Michalowski at www.forexlive.com. Source