Price moves up 68 pips, and comes back down
The GBPUSD shot up about 68 pips on the back of the statement/vote and traded at the highest level since February 2nd, but sellers entered, and have pushed the price back lower. It currently trades down toward broken trend lines. The lowest trend line comes in at 1.41388 area. That also was the close from yesterday's trading. The 1.4144 level is the high going back to February 16th.
The Australian dollar is the weakest performing major currency on the day
The jobs report released earlier was actually decent, but yet the aussie remains on the backfoot in trading today. AUD/USD is trading near the lows for the day, as the rejection at the 100-day MA (red line) proves to be the technical indicator that the pair is still struggling for upside momentum.
The pound climbs ahead of the BOE decision
It's been a nice run for cable this week on the Brexit preliminary deal and now with the US dollar side of the equation helping out. Tomorrow is retail sales and the BOE decision.
No change expected at 4 PM ET/2000 GMT
The presser from Chair Powell is over. The dollar moved lower. That included the dollars move against the NZD.
That pair moved sharply higher through his speech. Seeing the pair traded at the lowest level since January 10th and also traded below the 200 day MA for the first times since January 4th yesterday and today, the rebound has left those breaks in the rear view mirror (see daily chart above). PS/ the price also moved below the 38.2% and the swing lows from February and early March. That area at 0.7175-83 was a key level. The break failed.
100 hour MA retested. Price in the Neutral area.
The US stocks have given up their gains for the day with all the major indices in the red now. That reversal, has the Pavlovian reaction of selling the USDJPY (and the dollar in general).
Level to eye...
Quickly on the EURJPY, the pair has moved sharply higher after the FOMC decision and is up testing the 200 hour MA and the 50% at the 131.03. Key level to eye. So far, sellers are leaning on the test.
The technical view for the EURUSD, USDJPY and GBPUSD through the FOMC decision....
The EURUSD held the 100 hour MA at the highs today (blue line in the chart below). The price has rotated back down into the swing area defined by swing lows going back to March 2nd between 1.2251-72.
Support at the 100 hour MA. Resistance at the 200 hour MA.
The USDJPY is "ping ponging" between the 100 and 200 hour MAs for most of the day as the FOMC decision, statement, dot plot and presser is awaited.
Back above swing area. Tests 38.2% of the move lower this week.
The EURUSD ran lower yesterday and in the process moved below a swing area that stalled falls going back to March 2nd (see green numbered circles). That fall reached the underside of the broken trend line at 1.22387 and stalled. The grind back higher today has moved back above the "yellow area".
USD is mostly lower
Two commodity currencies are leading the table of the strongest and weakest currencies today. The CAD is the strongest on , while the NZD is the weakest as North American traders enter for the day. The USD is mostly lower with gains vs. the NZD and near unchanged vs. the AUD.
The pair hit a low of 0.8724 on the day after the report was out
The key to the report was higher wage growth. The figure was the highest since 2016, and it gives reason to believe that the strain faced by UK consumers on "high inflation-low wage growth" is slowly coming to an end.