July 31, 2024 at 02:17PM
In the kickstart video for July 31, I take a look at the three major currency pairs – the EURUSD, USDJPY and GBPUSD – from a technical perspective.
The USDJPY is down sharply after the Bank of Japan did raise rates by 50 basis points to 0.25% and decreased the bond buying to ¥3 trillion. The 200-day moving average was broken at 151.675. That is now resistance along with the 50% midpoint of the move-up from the December 2023 low at 151.09. On the downside, the price fell short of the next swing area between 149.88 and 149.649.
The EURUSD is moving to a new high after the US data this morning and is extended above the 100-day moving average 1.0836. Earlier today, the price traded above and below its 200-day moving out of 1.0818. Both those levels would now need to be broken on the downside to shift the bias in that direction. Having said that the falling 200-hour moving average comes in at 1.08514 and will need to be broken to increase the bullish bias. Above that since the 100-bar moving average on the 4-hour chart at 1.08619 as a topside target.
The GBPUSD continues its up-and-down waffling ahead of the Bank of England rate decision tomorrow. The expectations are split between a cut and no change perhaps leading to the up-and-down price action. On a topside, a break of 1.28599 would give a short-term bullish tilt. On the downside, moving below the 50% of the move-up from the June low at 1.2828 and eight swing area down to 1.28158 would have turned toward the 200 bar moving average on the four hour chart of 1.2798 (just below 1.2800 natural support).
This article was written by Greg Michalowski at www.forexlive.com.
