US yields moving lower. Stocks in the red. Gold up 1.74%
The markets are in motion.
- The USD is trading at low levels with all the major currency pairs trading at extremes.
- US bond yields are moving sharply lower with the 10 year down nearly 7 BPs on the day (2.3716%)
- The US stock indices have turned lower with the S&P now down about 6 points after being up about 2 at the high
- Gold is up $20 or 1.74%
USDJPY:
The dollar is the weakest vs the JPY - losing 1.68%. The tumble in the USDCNH is helping to contribute as is the break of support at the 115.96-116.09 area and the old 61.8% level at 115.598 (see video by clicking here). That is now resistance for the pair.
EURUSD:
The EURUSD (see prior post) moved above the 200 hour MA on the 4-hour chart at the 1.05558 level. That MA has been breached on 4 separate bars since the US election - each failed fairly quickly. Today's move is sticking it seems. Stay above and the buyers are in control. The targets above include:
- 1.06059. 50% of the move down from the Dec high
- 1.0651. The high from last week
- 1.06688: The 61.8% and also highs from the week of Dec 9th.
The Asian Pacific high reached 1.0574. Stay above it on a correction would be a bullish signal.
GBPUSD:
The GBPUSD is trading outside the box on the hourly chart. That Red Box is defined by a double top in the 1.2390 area (now risk/support) and a double bottom below (at 1.2200 area). The low this week stalled at the low. Today's low stalled near the converged 100 and 200 hour MAs before moving higher (see chart above).
Stay outside the box keeps the bulls more in control. The 1.2487 becomes the next major target (50% of the move down from the December high).