July 09, 2024 at 02:03PM
Fed Chair Powell will be testifying on Capitol Hill today (and tomorrow). The pre-release text of his comments were not released. HMMMM. Markets will be focused on his comments on inflation and the trend in inflation and for any clues on the potential for a initial rate cut going forward.
With the uncertainty ahead, understanding the technicals that are “in play” can make or break your trading day. In this video,I take a look at those technical levels for the three major currency pairs – the EURUSD, USDJPY and GBPUSD.
EURUSD: The EURUSD is starting the North American session making new lows (for the day) and in-the-process is testing the rising 100 hour moving average at 1.08132. The level will be the key barometer for both buyers and sellers in trade today.
USDJPY: The USDJPY is higher and has inched above the near converged 100 and 200 hour MAs at 161.05-161.08. Getting and now staying above those levels shifts the bias more in favor of the buyers. Yesterday, the price low tested the April high praise at 160.208.(low reached 160.25). The inability to move below that level, gave the buyers the go-ahead to push higher. Now the 100./200 hour MAs will be eyed for a more bullish shift in the pair.
GBPUSD: The GBPUSD held resistance today between 1.2816 and 1.2827. The level represents a swing area from trading going back to March (see the video). Seller’s leaning against that level keeps the sellers in play/control. A swing area between 1.2754 and 1.2777, is the next downside target.
US stocks are higher in premarket trading ahead of the Chair testimony which will begin at 10 AM ET. The U.S. Treasury will auction off 3-year notes at 1 PM ET. Yields are higher by about two basis points across the yield curve.
This article was written by Greg Michalowski at www.forexlive.com.
