In this video, I take a look at the three major currency pairs from a technical perspective.
On Monday, the EUR/USD pair fell, approaching its rising 100-hour moving average which is currently at 1.1143 (current price at 1.11615). This moving average will be a key barometer for the pair in the new trading day. Staying above this level is more positive. Moving below it is more negative.
The USD/JPY pair fell at this time yesterday to start the trading week, but returned to the upside as yields in the US rose slightly yesterday. The rally lifted the USD/JPY pair above a swing area on the hourly chart between 144.038 and 144.447. If the price can hold above that area, traders will look to the falling 100-hour moving average at 145.198 as the next upside target. As we recall last week, the price was able to clear the 100-hour moving average, but was unable to extend above the higher 200-hour moving average. The price will need to clear both of these moving averages to increase the bullish bias in trading this week. In the absence of that, the sellers remain more in control.
The GBP/USD pair moved above its 2023 high of 1.3145 during yesterday’s trading and remains above this high to start the new trading day. If the price manages to hold above this level, the price momentum will have traders eyeing 1.32977 as a target (call it 1.3300). Conversely, a move below 1.3142 could disappoint buyers and have traders eyeing the July high near 1.30439. Its rising 100-hour moving average at 1.3118 is also in play. The price has not traded below its 100-hour moving average since August 15.