The USD is stronger in trading today as US yields move higher. The US two-year yield is up six basis points while the 10-year is up nearly 10 basis points on the day. That comes after gains on Friday after the stronger-than-expected US draft report.
Technically, the EURUSD and the GBPUSD are making breaks below key technical levels (higher USD).
EURUSD: The EURUSD is written below its 100-day moving average 1.0776, and now looks toward the swing low from December 8 at 1.07238 followed by the 61.8% retracement of the move-up from the September low which comes in at 1.0712. Staying below the 200-day moving out keeps the Bears/sellers firmly in control.
GBPUSD: The GBPUSD is breaking outside of its red box that has defined the range since mid-December between 1.2600 and 1.2800. The prices also fell below its 200-day moving out for the first time since mid-November. Staying below that level at 1 2561 keeps the bears/sellers under control.
USDJPY: The USDJPY did move to a new 2024 high above 148.80, but cannot sustain momentum (the high priest reached 148.82). The price corrected lower but is now moving back to the upside and could look to retest that 148.80 level. That level also corresponds with a swing low going back to October 30. Breaking above without traders targeting the 149.00 level followed by the the 149.70 level.
This article was written by Greg Michalowski at www.forexlive.com. Source