Action is limited/corrective as London day works toward the 4 PM fixing
The dollar is correcting a little in the NY session.
- The EURUSD could not reach the downside target at the 1.1050 area and has moved back above the 200 bar MA on the 4-hour chart. That MA held support yesterday toward the end. When it was broken earlier today, it attracted sellers. A triple bottom was formed at the 1.1059 level. The price has retraced to the 50% of the day's range at 1.1092. Does sellers come in against the level/against the prior day clo
- The USDJPY moved below the 100 day MA and other support at the 102.80-92 area but could not sustain momentum. The rally has stalled at the closing level from yesterda at 103.29. The intraday dip came down to the 200 bar MA on the 4-hour chart at the 103.00 level (nice round level) and held. Yesterday that MA held support. So technically we are back to where we were yesterday. Looking for support at the 200 bar MA on the 4-hour. A move above the close from yesterday is eyed for further upside potential into the NY afternoon
- The GBPUSD traded at the highest level since the October GBP crash (above 1.24758). The price also moved above the 38.2% of the move to the post crash low (not the crash low - ignore that). That level comes in at 1.24819. The high price reached 1.24936. The correction lower moved close to the underside of the channel trend line at 1.2402. The low came in at 1.2411 and is bouncing.
- The USDCAD (employment comes out in Canada tomorrow as well), has been trading up and down over the last few weeks. The pair has maintained activity near the highs but it is having trouble going higher despite oil prices moving down below $45 (from $49.72 on October 27th). Trend lines are forming above and below. There was a failed break higher yesterday on the back of a surge in inventories (that did not keep the bullish bias). THere was a dip below the lower trend line today. That failed. Something has to give. If the price does fall below the lower trend line at the 1.3371 level (and stays below), the 1.3352 level is another key level to get below (and stay below). That area has a number of swing lows going back to October 27th
