August 27, 2024 at 11:17PM
In yesterday’s video, looking at the EURUSD, USDJPY and GBPUSD, I stressed:
“On Monday, the EURUSD moved lower and in doing so, is moving closer to its rising 100-hour moving average currently at 1.1143 (the price is at 1.11615). That moving average will be a key barometer for the pair in the new trading day. Stay above is more bullish. Move below is more bearish”
WHAT HAPPENED AND WHAT NEXT?: For the EURUSD, it did wander lower but DID run into support buyers against the 100-hour MA and bounced. That MA remains a key barometer for buyers and sellers today and going forward. It would take a move below the MA to give sellers some control. Absent that, and the 1.1200 highs from last week will be targeted.
“The USDJPY moved lower at this time yesterday to start the trading week, but rotated back to the upside as yields moved marginally higher in the US yesterday. The rise has taken the price of the USDJPY above a swing area on the hourly chart between 144.038 and 144.447. If the price can stay above that area, traders will look toward the falling 100-hour moving average 145.198 as the next upside target. Recall from last week, the price was able to get above that 100 hour moving average, but could not extend above the higher 200-hour moving average. Getting above both of those moving averages will needed toincrease the bullish bias in trading this week. Absent that, and the sellers remain more in control.”
WHAT HAPPENED AND WHAT NEXT?: In trading yesterday, the USDJPY DID stay above the 144.038 to 144.44 level with buyers taking the price up to test the falling 100-hour MA in the morning European session. Sellers DID lean against that MA on the test and pushed the price back into – and through – the aforementioned swing area (down to 144.038). The next key target comes in near 143.40.
The GBPUSD moved above the 2023 high price at 1.3145 during yesterday’s trading and remains above that high to start the new trading day. If the price can stay above that level, the price momentum would have traders looking toward the 1.32977 as the target (call it 1.3300). Conversely, a move below 1.3142 could disappoint the buyers and have traders looking back toward the high price from July near 1.30439
WHAT HAPPENED AND WHAT NEXT?: The GBPUSD did stay comfortably above the breakout support level at 1.3145 with a low only to 1.3179. Buyers remained in control. The 1.32977 remains a target level on the topside. The high price so far has seen the pair extend to 1.3266. On the downside, the rising 100 hour MA is at 1.31617. The price still needs to get – and stay – below that level to give the sellers some control. Absent that and the 1.3300 level remains the next key target on the topside.
Be aware and prepared. Watch the above video.
This article was written by Greg Michalowski at www.forexlive.com.
