In my opening video on July 19, I took a look at the three major currency pairs – EURUSD, USDJPY, and GBPUSD.
The EUR/USD pair fell, continuing the decline it started yesterday, and in the process tested its rising 200-hour moving average at 1.08794. This moving average will serve as a key downside gauge today and in the future. A move lower is more bearish. On the upside, the 100-day moving average at 1.08073 will serve as a resistance target on the upside.
The USD/JPY pair rallied yesterday to extend into a swing zone near 157.45 and its falling 100-hour moving average is currently at the same level. In today’s training, price action has been choppy up and down, moving above and below the aforementioned 157.45 level. The price is currently back above this level in early US trading. On the positive side, the 38.2% retracement of the July trading range comes in at 157.87. This level was tested earlier today at session highs and would be a major upside target to break if buyers are to gain more technical control.
GBP/USD moved to its highest level since July 19 this week, but pulled back yesterday and today. Today’s downside move is approaching the pair’s high from March 8. This level is at 1.2893. Today’s low came in at the natural support level at 1.2900 and found modest buying from this target area. The pair would need to move below 1.2893, and the 38.2% retracement to move up from the pair’s June 27 low at 1.287892 would increase the bearish bias. On the upside, dip buyers would eventually need to return above 1.3000 to increase the bullish bias and show that this week’s break higher was a failure.