USD moves lower and takes the early lead as the weakest currency

It is early in the day, but the USD is moving lower versus all the major currency pairs. The declines are the most versus the NZD and AUD with declines of -0.50% and -0.42% respectively.

Some technical highlights for the major currency pairs:

  • EURUSD: The EURUSD is moving above its 100 hour moving average 1.0577 and now looks toward the 200 hour moving average of 1.05866. Move above both as moving averages would tilt the bias back to the upside technically. Above that and traders will look toward the broken 38.2% retracement of the October range at 1.0599.
  • USDJPY: The USDJPY is below the highs from last Thursday at 150.774 and is testing the 38.2% retracement of the move up from Monday’s low at 150.595. Stay below 150.77 keeps sellers in firm control. Move below the 150.595 level would have traders looking down toward the rising 100 hour moving average (blue line currently at 150.286).
  • GBPUSD: The GBPUSD is extending to its new session highs and in the process is testing the 50% midpoint of the move down from last week’s high at 1.21782. In the process, the pair is moving away from its 200-hour moving average at 1.2150. Although the price has traded above and below the moving average of the last few trading days, the break higher has to be respected. The buyers are making a play.
  • AUDUSD: The AUDUSD is stretching higher and in the process is retesting a swing area between 0.6425 and 0.6435. There may be some sellers here after the sharp rise in early trading with a stop above 0.6435.

This article was written by Greg Michalowski at www.forexlive.com. Source