In this April 10 introductory video, I take a look at three of the major currency pairs from a technical perspective – EUR/USD, USD/JPY, and GBP/USD.
In this report, I also take a quick look at the USD/CAD pair after a stronger than expected April jobs report showed a gain of 90.4K – the largest increase since January 2023.
The EUR/USD pair traded in a narrow 15 pip trading range at the start of the US session, extending to the downside. However, the 100-day moving average at 1.07607 remains the level that needs to be broken to increase the bearish bias. On the upside, there is strong resistance at the 200-day moving average and the 50% midpoint of the downward move from the March high. This level comes at 1.07906.
USDJPY reached “very close” to its 200-hour moving average support target in Asian trading, and found willing buyers off that level (bottom reached 155.25 with moving average at 155.21 at the time ). The subsequent rise has now taken the price to 155.78. On the upside is the high from yesterday's trading at 155.95. Above that, the 50% of the downside move from the April high (and the high dating back to 1990) comes in at 156.029. This area is a key level for both future buyers and sellers.
GBPUSD rose in European trading, but found willing sellers ahead of its key 200-day moving average at 1.25421 (the high of 125.40 is just 2 pips away from this level). The subsequent move to the downside saw the pair test the bottom of a group of moving averages near 1.2517. Getting below this level would tilt the bias more to the downside today and into next week.
Finally, the US dollar fell against the Canadian dollar after the Canadian jobs report came in stronger than expected. The bearish move has pushed the price below the 200-bar moving average on the 4-hour chart at 1.3665. This is resistance now (staying below keeps sellers in control). On the downside, the low price stopped at the April 26-29 low of 1.3632. Going forward, it will take a move below this level to increase the bearish bias and have traders eyeing the low from last week at 1.36096.
