Technical Analysis

In The price of the EURUSD extended into the “extreme area”, and outside the older “red box” that confined trading from April 27 to May 23, sans the 2-3 days from the lower extreme (between 1.0348 and 1.04578). The move below 1.04578 took the price down to a swing area at 1.04189, where momentum to

The USD is the strongest and the NZD is the weakest as the markets are in turmoil. Flight to safety flows are in play with the JPY also up strongly. The  AUD  is following the NZD. The S&P is set to open in bear marker territory (down over 20%) as stocks take another large step

The USDCAD had lower lows for 10 consecutive days that took the pair to a cycle low at 1.25166 on Wednesday. Yesterday the BOC warned about the housing market which got the ball rolling back to the downside for the loonie (to the upside for the USDCAD). The price shot higher reaching to the 100

The NZDUSD rallied in the Asian session, and moved back up toward a topside trend line. Recall from yesterday, the price did move briefly above that trend line but quickly reversed to the downside. That move to the downside extended to a swing area between 0.63749 and 0.63792 toward the end of trading yesterday and

The  USDJPY  moved down and up yesterday, and it is moving down and up today. The low price yesterday stalled ahead of the 38.2% retracement of the last trend leg higher (from June 6). That retracement level is also near the swing high from Tuesday’s trade and a swing low from Wednesday’s trade (see blue

It’s a rough day for all risk assets but the pound has been particularly hard hit, lagging risk assets badly. Some of that might be a catch-up trade after it found some strength earlier in the week around the Boris Johnson drama but it’s re-correlated with stocks. That correlation was one of the stronger ones

The GBPUSD is continuing it’s run to the downside. That move lower started in the European session when the price fell below the 200 and 100 bar MAs on the 5 minute chart, shifting the bias back to the downside. The move lower has not really seen any meaningful correction. The largest correction in looking

The NZD (and AUD) is the strongest of the majors while the GBP (and CAD) is the weakest as North American session begins. The US CPI will be the highlight at 8:30 AM with the expectations are for the headline number to rise by 0.7%. The core measure is expected to rise by 0.5%. The

Earlier this week it was all about Treasuries. The whims of the bond market were seemingly steering sentiment elsewhere. Today though US 10-year yields are up just 1.6 basis points in a back-and-forth trade but risk aversion is high and worsening. The S&P 500 is down 67 points, breaking below the range of the past

The JPY is the strongest and the AUD is the weakest as the North American traders enter for the day. The JPY’s rise is in contrast to yesterday when it was the runaway weakest reaching the lowest level since February 2002 and getting within shouting distance of the 2002 high at 135.16. The high price

The NZDUSD moved lower in the Asian session after rising up to a swing area between and 0.6490 and 0.6499 before the close yesterday (see red numbered circles and yellow area). The high price reached 0.6494. The subsequent move to the downside saw the price extend toward the 38.2% retracement of the move up from

The  USDCHF  moved higher into the US session and in the process moved above the 38.2% of the last trend move lower that saw the pair moved from 1.0063 to 0.95442 (on May 27). Since that bottom, the price consolidated in a narrow range between 0.9544 and 0.9669 and traded above and below the 100/200

The USDCAD is trading at a new low. The price will below the low from yesterday at 1.25344 and has reached 1.25239 so far. The pair has not traded to a new intraday low for the 9th consecutive day. Looking at the daily chart, the next major target area from that chart comes between 1.2442

As the  USDJPY  and the USDCHF move to new session highs, the catalyst is a move higher in yields. The 10 year yield is currently at 3.034%, up 8 basis points on the day. The high yield reached 3.04% so far. The low was at 2.937%. Since the May 6th low the yield is up

The EURUSD is tilting back toward the low for the day. That low came in at 1.0683. The current price bar on the hourly chart just reached 1.06876. In the NY session , the price moved back below the 200 and 100 hour MAs (green and blue lines) at 1.0719 and 1.0713. That tilted the

The EURUSD has moved lower after the US jobs report showed a stronger than expected gain in nonfarm payroll. The move to the downside took the price back below the 100 and 200 hour moving averages at 1.07221 and 1.07177 respectively. The low price extended to 1.07033 so far. The current price trades at 1.0711.

The GBPUSD retraced Wednesday’s decline yesterday and in doing so move back up toward the 100/200 hour moving averages (blue and green lines in the chart above). Recall on both Tuesday and Wednesday, the price tested the 200 hour moving average before falling below that level on Wednesday and racing to the downside. The subsequent

Both the GBPUSD and USDCHF moved in the strong dollar direction after the US jobs report, but both have retraced back to near converged 100/200 hour moving averages. However, traders leaned against the converge moving averages and have pushed the prices back away. Looking at the GBPUSD, the 100 and 200 hour moving averages come