USD gains strength, EURUSD and GBPUSD hit new lows as yields rise

The USD is moving higher. Higher yields are helping with the tenure now up 10 basis points at 4.543%. The two-year is up 9.7 basis points at 4.913%

  • EURUSD: The EURUSD is trading to new session lows and in the process moving away from its 50% midpoint 1.08613. I outlined this level in the morning kickstart video (click here). Sellers successfully leaned against that midpoint level and in the last few minutes have pushed the price to new session lows. The current price is trading at 1.08345. On the downside, the 200-day moving average comes in at 1.0803. The 100-day moving average comes in at 1.07912. Those levels should provide support for any further downside momentum. I would expect the buyers to come in ahead of those levels.
  • USDJPY: For the USDJPY, it rose higher after breaking back above the broken 38.2% retracement on the hourly chart at 150.868. The high price moved up to test the swing area target between 151.17 and 151.23. Just above that area is the falling 100-hour moving average at 151.27. The high price reached 151.238 and slowed the assent. The current price is trading at 151.18. That swing area and the 100-hour moving average should be a ceiling on the rally. However, if broken, traders who are short would be disappointed. Yesterday the price of the USDJPY tumbled below its 200-hour moving average (green line in the chart below at 150.769). The low price today bottomed within 4 pips of the 150.00 key level. That hold against that key natural technical level started the snapback rally over the last few hours.
  • GBPUSD: The GBPUSD brought back below the swing area between 1.2435 and 1.24497. The price also fell back below its 200-day moving average at 1.24397. The price is now trading at 1.2405 just above the natural support at 1.2400. There is not a lot of support below that level until 1.2368 and then 1.23366 if the sellers are to keep the pressure on. It would now take a move back above the 200-day moving average at 1.24397 to give the buyers some comfort. The price action today also moved back below the 38.2% retracement at 1.2458.

This article was written by Greg Michalowski at Source