EURUSD take out last weeks highs on the news.
The EURUSD has taken out the highs from last week (was 1.1212) after the weaker than expected durable goods orders (-1.1% vs -0.6% estimate. Prior month -0.9% vs 0.8%). The high price has so far reached 1.1218.
100 and 200 hour MAs keeping a lid on the pair
The USDJPY over the last day or so has been pushing the 200 hour MA on a number of occasions (green line in the chart below). The little pushes above line were met with little momentum.
Topside trend line /38.2 retracement eyed
The EURUSD has limped higher in trading today after failing (once again) on the push to the downside. The low for the week came on Tuesday and that low took out last weeks low. It was invitation to go lower but the break stalled. Since then, the pair has seen higher lows, in choppy trading conditions.
Sellers on retail sales yesterday, are buyers on weaker CPI
The Canada CPI came in weaker than expected, and that has seen the USDCAD move higher - erasing some of the move after yesterday's stronger retail sales.
Watch the 1.3208 area for support
The USDCAD dipped back lower in overnight trading and tested the low from yesterday in the process at the 1.3208-11 area. That area has also been a swing area for the pair going back to June 13. A move below on a higher CPI number, should solicit more selling.
The GBP is the strongest. The USD is the weakest.
As North American traders enter for the day, the GBP is the strongest while the USD is the weakest. Take note, however, the spread between each is very narrow. All the currencies are more bunched together.
Two MA converged at 0.8790
The comments from Kristin Forbes are giving the GBP a little bid. The GBPUSD is trading at a new North American session high of 1.2683 (the day high at 1.2686 is still above).
A quick summary
The EURUSD has wandered further away from the 100 hour MA at 1.1161, but let's be honest....the range for the day was 24 pips at the start of the day. The range is 32 pips now. The low reached 1.11449. A trend line on the hourly chart comes in at 1.1144 currently.
With minutes to go in the London session, 33 pips is all she can muster today
It looks as if the economic temperatures have moved back down in the UK today, but the impact from the heat has the GBPUSD market wilting in trading today.
100 hour MA stalls the correction...
The NZDUSD moved higher after the RBNZ decision/statement and is the strongest currency on the day.
The pair, nevertheless, stalled against trend line resistance in the London session. The price decline fell to support at the 100 hour MA and is back up testing the trend line. A move above should solicit more buying with the 0.7276 and 0.7297 recent swing highs as targets.
US yields are dipping
The USDJPY is ratcheting to the downside but the route it is taking is not a smooth ride.
Yesterday and on Tuesday, the pair stalled ahead of swing highs and the 100 day MA (at 111.79 today). That sent the price back down.
Falls below 200 and 100 hour MA
The Canadian retail sales price, surprised to the upside (+0.8% versus +0.3% est. and +1.5% vs +0.7% est for ex auto). The CAD has gotten stronger as a result (USDCAD weaker). The fall has taken the price below the 200 and 100 hour MAs at 1.3268 and 1.32597 respectively. Stay below is more keeps the bears in complete control.
Will the sellers put a lid on it
The EURUSD has moved back into that ubiquitous area that has had a number of swing levels, i.e. between 1.11609 and 1.1171. Technically a move above puts the pair back into the area where most of the trading has taken place over the last month, with the 1.1182-85 the next target (200 hour MA and 38.2% retracement).
Still trades near recent highs....
The RBNZ will likely keep rates unchanged when they announce at 5 PM ET/2100 GMT. However, there is some speculation that they will be more in line to raise rates down the road. Any mention of moving to more normal rates should be a boost to the currency.
The November low gives way
What a terrible month for oil. It's down more than 20% since the May 25 OPEC decision after another 3% decline today.
What's especially negative for oil is that three bullets were fired by the bulls today and they missed. 1) OPEC tried jawboning 2) The inventory report was slightly bullish 3) Technical support at the Nov low gave out.