Dollar moves higher after Trump drops a bombshell about negotiations
Pres. Trump surprised the markets saying that he has instructed the GOP lawmakers to cease negotiations with Nancy Pelosi on a Covid relief bill, saying he will pass a bill after the elections when the GOP wins.
The dollar has moved higher in response as traders head into the relative safety of the USD (and JPY).
EURUSD: The EURUSD moved to and through its 100 hour moving average at 1.17466 but found support against a lower trendline and just above its 38.2% retracement of the move up from September 25. The price has bounced back above the 100 hour moving average. A move below would be more bearish (if it can stay below).
GBPUSD: The GBPUSD tumbled below its 100 hour moving average and moved toward its 38.2% retracement of the move up from the September 25 low at 1.28793. The pair did stall against a swing low from Friday's trade after the employment report at 1.2891. The 200 hour moving average at 1.28683 is another downside target on further selling. The 100 hour moving average at 1.2929 is a risk level now. Stay below is more bearish.
NZDUSD has tumbled below its 200 hour moving average and 38.2% retracement near the 0.6601 level. Stay below is more bearish.
USDCAD: USDCAD as spiked above its 100 hour moving average 1.32867 and moved above its 38.2% retracement of the move down from the September 30 high at 1.33093. THe next target comes at at the 200 hour moving average and 50% retracement near 1.3330.
USDCHF: The USDCHF has moved up to test its 100 hour moving average at 0.9178 and trendline just below that level at 0.9175. So far the moving average has held resistance. A move above would target 0.91949 (38.2% retracement of the move down from the September 25 high).
