Flight into the USD
The USD is moving to NY session highs vs the EUR, GBP, JPY, CHF, AUD and NZD. It is moving to new day highs vs the EUR, JPY and CHF.
The US stocks are moving lower and is trading at session lows which is leading to more risk off trades and flows into the green back. The Nasdaq is now down -0.56%. US yields are higher ahead of the 10 year auction at the top of the hour.
- EURUSD: The EURUSD has moved below its 200 hour MA at 1.2073 after holding that level on the first test. Stay below tilts the bias more to the downside with the 50% of the December trading range at 1.20485 the next target.
- GBPUSD: The GBPUSD has moved back below the 100 hour MA at 1.33977 and the 200 hour MA at 1.33807 now. The pair cracked above the 100 hour MA after testing it on Monday, Tuesday and again today (before the break). The high extended all the way up to 1.3477 before heading back lower on dollar buying and Brexit no deal fears. The 100 hour MA is back to being resistance as the pair looks back toward 1.33485 (and completing a full up and down lap.
- USDJPY: The USDJPY based at the 100 hour MA in the London/European session and has seen increasing buying over the last few hours. The price is now above the 61.8% retracement of the move down from the December 2 high at 104.33, The pair remains in an up and down range between 103.665 and 104.746 (see chart below).
- NZDUSD: The NZDUSD is down retesting the low from yesterday at 0.7023. That is near the 38.2% retracement of the move up from the November 23 low. A move below would have traders looking toward the 50% retracement at 0.7000. The low on Monday reached 0.7004 and bounced. The pair is back below the 100 and 200 hour moving averages between 0.70497 and 0.70470. Stay below is more bearish.
