The USD retracing the gains as sentiment shifts

Technical Analysis

Nasdaq up near 100 points now

The US stocks are moving higher after trading lower in premarket trading. Feds Kaplan’s comments was the catalyst for the reversal.  

The US dollar has also reversed with the greenback moving lower over the last few minutes of trading.

EURUSD. The EURUSD successfully defended the low from yesterday/low for the week/low going back to November 2020, near 1.16648 and is trading up near 1.1678. The level to buy now would be at 1.16929. That was the swing low from Wednesday’s trade. Above that and the lows for the year prior to this week at 1.17035 to 1.17053 would be targeted. That area is key for the short term bias.  Move above would give the buyers more confidence.

USDJPY: The USDJPY is moving back toward the high for the day near 109.88. The 200 hour moving average and 50% retracement since  August 11 comes in at 109.95. The dual technical levels there make that level key for the short-term bias.  At the lows today, the pair held near the 100 hour MA. 

GBPUSD: The GBPUSD is moving back towards it’s high for the day near 1.3640. The pair currently trades at 1.3630. A swing area between 1.36415 and 1.36537 going back to July 18 through July 21 is the minimum target.

AUDUSD. The AUDUSD traded to the lowest level since November 2020 today and in the process moved below a swing area going back to October/November between 0.7135 and 0.71568.  If the price can move back above that area (it is currently trading at 0.7146), it could lead to some for the corrective buying in the short term.  Absent that, and the sellers are still in firm control.  

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