The USD is moving higher on flight to safety flows after the extreme violence in Isreal on the back of the terrorist attack by Hamas militants (and Iran). Thousands of civilian deaths and injuries have occurred. Israel has responded with a barrage of attacks on Gaza.
In this video, I outline the technical moves that have occurred as a result of the news
EURUSD:The EURUSD gapped lower on the weekend news on USD buying and in the process, the pair moved back down toward the 100 and 200-hour moving averages at 1.05187 and 1.05279 respectively. Although the 200-hour moving average was broken, the 100 hour moving average did hold support. Technically speaking, a break below the 100-hour moving averages needed to increase the bearish bias. Conversely staying above and the buyers are still in play. There is upside resistance up at 1.0551 – 1.05571 further upside momentum. Conversely, a break below the 100 hour moving average at 1.05187 opens the door for a swing area between 1.0483 and 1.0496. On Friday, the low price after the US jobs report found support buyers against the 1.0483 level and bounced sharply higher.
USDJPY: …more to come
GBPUSD:….more to come