Intraday changes are mild but we are seeing some interesting levels impact the USD pairs. EUR/USD is starting to move towards testing levels below 1.0900 with USD/JPY approaching the 150.00 mark. This comes despite risk trading rising further, helped by easing tensions in the Middle East.
Daily chart of EUR/USD
Yesterday’s EUR/USD decline confirms a breakout of the 100-day moving average (red line), putting sellers in a better position to start the week. Price action is now also moving away from the 50.0 Fibonacci retracement level of the highest swing since April, which we see at 1.0907.
The next major support level to focus on now is the 200-day moving average (blue line). This is shown at 1.0873 currently. In the event of a break below that, sellers will have more momentum to push the price towards the early August lows near 1.0800.
USD/JPY daily chart
Looking at the USD/JPY pair, the pair came close to crossing the 150.00 level yesterday with its highest level reaching 149.98. Price action remains flat at this point today, as buyers look to remain alert. But they will need some extra oomph to get past this level and chase a bigger push higher from here.
Just be careful that there is a crossover of the 100-day moving average (red line) below the 200-day moving average (blue line) of the pair. This could indicate an upward shift in momentum in the short term and also serve as major resistance closer to 151.00 currently.
But so far, the changes are relatively minor across the board. Here’s a quick look at things right now.
After yesterday’s slow start, things should improve in the new week as stated here.