The ADP report came in weaker than expected and the US dollar has reacted to the downside.
Yields of also moved lower with the 10 year now down -4.4 basis points at 4.103%. Recall that at the cycle lows on September 17 (the day of the FOMC rate cut), the yield moved just below the 4.0% level to 3.992%.
What are some of the technical levels for so the major currency pairs now?
EURUSD: The EURUSD spiked above its 100-day moving average at 1.34922. Last week, the price moved back above its 100-day moving average as well, but could not sustain momentum. The next target is the 50% midpoint of the move down of the September trading range. That level comes in at 1.35244. Getting and staying above that level should open the door for further upside momentum.
USDJPY: The USDJPY als0 fell to a new low and is currently testing the low of a swing area between 146.55 and 146.803. Just below that level is the rising 100-day moving average at 146.47. Looking at the hourly chart, most of the trading range has been between 146.14 and 148.819. Just yesterday – and on Monday too – the high price stalled at 148.819. Now the price is getting closer and closer to the low of that trading range (see the red box on the chart below).
GBPUSD: The GBPUSD – like the EURUSD – spiked above the 100-day MA at 1.34925. The next target is the 50% of the September trading range at 1.35244. The 100-day MA is now close risk. Yesterday, the price of the GBPUSD stayed between the 100-hour MA and the 200 hour MA (lower blue and green lines on the chart below). Today, the price moved above the higher 200-hour MA and then based at the level before moving higher
