The dollar moves higher on explosion headlines.

Technical Analysis

The dollar has moved higher on the large explosion news out of Dontsk. The explosion is reported to be a car bomb. It may be the false flag that kicks off a bigger offensive by Russian troops, but the market is taking comfort it wasn’t mortar. Nevertheless, the uncertainty increases

The move higher in the greenback has seen the dollar move to new highs vs the EUR, GBP, CAD, and AUD. The greenback tested highs vs the
 
 CHF 
and
 
 NZD 
but remained just below the highs vs those currencies so far.

Some technical highlights:

  • GBPUSD. The GBPUSD moved down to test the 100 hour MA at 1.35705. The 200 hour MA is at 1.35615. The low reached 1.35721 and bounced against the MA support level. It currently trades at 1.3587.
  • EURUSD. The EURUSD moved below the lower swing area between 1.13189 to 1.13298, but has bounced back higher and trades at 1.1332. The low stalled ahead of the 50% midpoint of the move up from the Jan 28 low at 1.13075 (low reached 1.1314).
  • USDCAD: The USDCAD spiked higher over the last hour or so of trading. That move was helped by getting out of the first mud pit above 1.2733 (see post here). The pair has moved up to test a swing area between 1.2747 to 1.27524 and found sellers in that area. The pair trades at 1.2743 currently. Move back below 1.2733 and there could be disappointment on the break out of the 3 day mud.

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