US dollar moves lower after Fed Chair Powell’s initial remarks

The initial comments from Fed’s Powell has helped to push yields lower with the 10 year yield now down -6.1 basis points. That has also led to a decline in the US dollar:

• EURUSD is moved above it swing area between 1.07208 to 1.07346. The price high just reached 1.07462. The 50% of the range since mid-April comes in at 1.07579 and represents the next target for buyers.

• USDJPY is moving lower and tests the high price on Friday at 161.275, breaking below that level would have traders looking toward the 100-hour moving average at 160.944 (blue line on the chart below). Getting and staying below that 100-hour moving average would be the first break since June 14. As such it represents a key technical level for sellers to get to and through if they are to take more control.

• GBPUSD is pushing to new highs and is approaching its 100-bar MA on the 4-hour chart at 1.26909. The 200 bar MA on the same chart comes in at 1.27132.

This article was written by Greg Michalowski at www.forexlive.com.