September 24, 2024 at 03:30PM
The USD is moving lower after the weaker than expected economic data. Richmond had composite index came in at -21 verses -19 last month. The consumer confidence came in at 98.7 versus 105.6 last month and 104.0 estimate.
With the election forthcoming, it might not be that surprising that there is weakness in survey’s from the uncertainty.
Nevertheless the US dollar has moved lower. The EURUSD and the GBPUSD are making new highs. The USDJPY is moving lower. The DXY index is moving back down toward the 100 level (at 100.57 currently at -0.32% on the day. The low last week reached 100.215 before bouncing back toward 101.50.
EURUSD:The EURUSD has moved outside of the swing area between 1.1131 and 1.1145. Bullish. The next targets come against high prices over the last few trading days The high price yesterday reached 1.1166. The high price of from Friday extended to 1.1181 and the high price from last week reach 1.1188. The price is also moving away from its 100 hour moving average at 1.11378. That level and the low of the swing area at 1.11311 would need to be broken and stay broken to increase the bearish bias (now risk).
GBPUSD: The GBPUSD moved above the 1.3358 level earlier today which was the high of a swing area going back to 2021 and 2022 (see video from this morning). Moreover, support held against that level on a dip today. That kept the buyers in firm control. The next target comes against the 1.3400 natural resistance level. The current prices trading at 1.3394.
USDJPY: The USDJPY .is moving lower and looks to test the 50% midpoint of the September trading range at 143.385. Also just under that level is the rising 100 hour moving average which currently comes in at 143.30. Move below about those levels would increase the bearish bias and likely lead to more downside probing. Recall from Friday, the low price stalled against at the 100-hour moving average before moving higher. That increases the levels importance (even though it is much higher today) and could give dip buyers a reason to buy with a stop on a break below.
This article was written by Greg Michalowski at www.forexlive.com.
