Technical Analysis

Light changes among major currencies for the most part

The ranges among major currencies today are leaving a lot to be desired after the volatility injection yesterday, mostly for yen pairs at least. The dollar isn’t doing a lot and changes are relatively light, with exception of the kiwi – which appears to be a bit of an outlier today.

The pound is slightly lower but the rest of the major currencies bloc are pretty much flat at the moment. This comes amid a slightly better mood in equities with bond yields also just slightly higher on the day. Despite a lack of change, there are still some key levels to note on the charts though:

EUR/USD is still vying for that upside push above the key trendline resistance (white line) as well as the 38.2 Fib retracement level of the swing move lower since January last year, seen at 1.0610. Those are key points to watch on the weekly chart to see if buyers have the appetite to chase a further move towards 1.0800 next.

GBP/USD is trading in a bit of no man’s land, with buyers failing to seal a firm break above the August highs at 1.2276-93 (on the weekly) and now having to contend with a defense of the 200-day moving average (blue line).

There needs to be a firm break on either side to vindicate the next meaningful directional push for cable.

Meanwhile, USD/JPY is trading back towards flat levels near 131.75 on the day after having pushed up to 132.30 levels in Asia earlier. The plunge yesterday was halted at daily support from the 16 June low at 131.49 and that remains a notable level to watch out for today, before the pair potentially looks to revisit the 130.00 mark next.

AUD/USD is barely hanging in there, just staying above its 100-day moving average (red line) for now after having seen the upside push fall short of contesting its 200-day moving average (blue line). A firm break below the former will see sellers start to exert more control, in search of a push towards the 21 November low at 0.6584 next before the 0.6500 level comes into play.

Lastly, the kiwi is the one currency that is a decent mover today with NZD/USD seen down 0.9% to 0.6290 currently. The pair faced a rejection at 0.6500 last week with the August high at 0.6468 also coming into play on the daily chart. Since then, the risk retreat has been a factor driving the pair lower with sellers now eyeing the 200-day moving average (blue line) next at 0.6257.

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