Both the EURUSD and the GBPUSD are testing key resistance levels against moving averages.
For the EURUSD, the pair is up testing its 200 and 100 hour moving averages between 1.13216 and 1.13256. Yesterday the price cracked below those moving averages and fell sharply. So far sellers are leaning against the level.
For the GBPUSD, the pair has moved up to test its 100 day moving average 1.35561.
So far the upside target for keeping a lid on the pairs as traders take profit/sell against the low risk technical levels. However, a move above the resistance levels will likely lead to stops and additional covering.
Stocks are seeing a reversal out of the NASDAQ stocks and into the more cyclical Dow stocks. The NASDAQ is currently down -227 points or -1.43%, while the Dow industrial average has reached a new all-time high and is currently up around three or point at 36,880. The S&P index is trading near unchanged.
In the US debt market, yields out the longer end remain higher but off the highs for the day. The 10 year yield is up 3.5 basis points, while the 30 year is up 5.7 basis points. The two year is trading down -1.6 basis points now.
