The US dollar moved higher after the stronger-than-expected US data released at 8:30 AM.
- Durable goods increase by 2.9% versus -0.5% estimate.
- Second-quarter GDP final rose to 3.8% from 3.3%
- Initial jobless claims fell to 218K versus 235K estimate. Continuing claims also were lower than expectations at 1.926 million versus 1.935 million estimate.
- Advance good trade balance fell to $-85.5 billion versus -95.20 billion estimate.
In the video above, I take a look at a number of the major currency pairs versus the US dollar as it moved higher. Some highlights include:
- GBPUSD: The GBPUSD is moving down toward the next key target area between 1.33607 and 1.33865. Break below and traders will look toward the low price from September 3 at 1.33309
- EURUSD: The EURUSD has dipped below the 200-bar moving average at 1.17025 and a swing area between 1.16924 and 1.17028. The 50% midpoint of the move up from the August 1 low comes in at 1.16549 and is the next major target.
- USDJPY: The USDJPY is running higher and extended above a swing area between 149.12 and 149.20. Staying above that area is more bullish and opens the door for further upside momentum toward 150.00.
- USDCHF: The USDCHF is moving higher and extending above a swing area between 0.7986 and 0.7994. That area is now close support along with the broken 61.8% retracement of the September trading range at 0.79787.
- USDCAD: The USDCAD is extending above a key swing area between 1.38917 and 1.3904. Not far above is the high price from August at 1.39235. That also corresponds with the 38.2% retracement of the move down from the March high. Get above that level and the 200 day moving average at 1.39754 would be targeted.
- AUDUSD: The AUDUSD is testing a swing area between 0.6559 at 0.6567. The 50% midpoint of the move up from the August below also is in that swing area at 0.6560. Stay below 0.6567 keeps the sellers in firm control. It would take a move above the low price from Monday and yesterday at 0.6574 to discourage the sellers from a technical perspective (failed break).
