GBPUSD, EURUSD, USDJPY trades at new extremes
Is the London 4 PM fixing having an impact? What about the dollar selling? Technicals? How about month end? It is probably a combination of all, but the end result is the currency markets are kicking it up a notch.
The GBPUSD was the big mover. It moved above the close from yesterday at 1.2857, then moved above a key resistance area at 1.2876 (200 bar MA on 4-hour and 38.2% retracement). That level only stalled the pair temporarily.
The price is now up testing the 200 hour MA at 1.29169 and the 100 bar MA on the 4-hour chart at 1.29214. The 1.2900 is now a close risk level for the pair. Stay above keeps the longs confident (and shorts scared). PS. EURGBP started to move lower and moved down to test the 0.8700 level (low 0.8703). That has also helped the GBPUSD
The EURUSD has also moved higher and tests the high from May 25th at 1.12497 (the high reached 1.12517 so far). The 1.12678 is the highest high going back to the election day. Remember on that day, the pair stalled at 1.1300 area (give or take a pip). Does the market make a run for it? It is looking more trendy today for the pair. PS the commitment of traders showed longs in the EURUSD reached the highest level since October 2013. The buyers are happy. Do the Big Boyz want to push this pair further now? Maybe….Watch 1.1233 for support. That was the high from May 26th.
The USDJPY felll to the 110.50 area. The lows form May 18th were at 110.51 and 110.23. The low yesterday at 110.65 is now resistance/risk for the pair.