The decline in the USD today, has seen a reversal with the better US ISM manufacturing PMI data :
- EURUSD. The EURUSD peaked at 1.0305 just before the data was released. That was just short of the 38.2% retracement of the weeks trading range at 1.03128. Stay below the 38.2% retracement today and going forwar will keep the sellers more in control.
- GBPUSD: The GBPUSD traded to a new high for the day at 1.24168 just ahead of the economic data, but that was still well short of the 38.2% retracement of the week’s trading range at 1.24487 (the next key target for buyers to start to take back some control). The current price trades above and below the 1.2400 level after declining to a low of 1.2387 after the data. Getting above the 38.2% retracement is required to give the buyers some comfort and the sellers some “cause for pause” after the declines seen in trading this week. Absent that, and the sellers are still in firm control.
- USDJPY: The USDJPY is trading back above its 100 and 200-hour moving average near 157.35. Those moving averages will be the key barometer for both buyers and sellers in the short term – above is more bullish in the short term, while moving back below will be more bearish in the short term. In trading today the price has been trading above and below the MAs for most of the trading day as buyers and sellers battle it out around the key trading barometer. .
- USDCAD: The USDCAD has been a big gainer in the North American session. Technically, the price has moved above the swing highs from December 20 and December 23 at 1.4435. The high price from December 1 .44666 is the next key target Earlier today, the price based near the near converged 100 and 200 hour MAs.
- AUDUSD: The AUDUSD in the European morning session moved up to test the falling 200-hour moving average at 0.62248. Sellers leaned against the level and with the data coming out stronger, the price decline (AUD lower/USD higher) has continued toward the 0.61987 swing low going back to December 19. A move below that level with momentum would have traders looking toward the low price reached on December 31 at 0.61785. The AUDUSD traded to a new low for the year on the last trading day of the year. That was also the lowest level going back to October 2022 when the low price bottom that 0.61695
This article was written by Greg Michalowski at www.forexlive.com. Source