Overview
The US session begins with the US Dollar (USD) showing strength after a previous decline. Stock markets are experiencing a downturn, while yields on government bonds are rising, with the 10-year yield approaching 4.30%. Oil prices remain relatively stable but are slightly lower.
Technical Analysis of Major Currency Pairs
EUR/USD
The EUR/USD pair experienced a significant rise yesterday, breaking through key moving averages and a critical swing area. The price peaked at 1.1615 before sellers intervened, leading to a decline. Currently, the price is testing the 200-hour moving average at 1.15286, with a low of 1.1535 before a modest rebound. Key levels to watch are:
- Resistance: 1.1608 (38.2% retracement)
- Support: 1.15286 (200-hour MA)
- Near-term battleground: 1.1542 - 1.1555
USD/JPY
For the USD/JPY pair, the focus is on the moving averages at 158.90 and 158.96. After breaking below these levels yesterday, the pair saw a decline to around 157.50. The short-term bias is defined by the level of 158.55:
- Below 158.55: Sellers maintain control.
- Above 158.55: Potential for a retest of the moving averages.
GBP/USD
The GBP/USD pair also surged yesterday, breaking above both the 100-day and 200-day moving averages before hitting resistance at the 50% retracement level. Following a decline, the price found support at the 100-day MA but has since rebounded. Key levels include:
- Key barometer: 1.3387 (100-day MA)
- Above 1.3387: Buyers regain control.
- Below 1.3362: Sellers take control, targeting 1.3349 (200-hour MA).