The US dollar moves lower after weaker ISM services data

The US dollar has moved sharply lower after the weaker then expected ISM nonmanufacturing data (lowest level since the pandemic):

• USDJPY: The USDJPY has moved below its 100 hour moving average at 161.211, and approaches it’s 200 hour moving average at 160.512. The price has not traded below its 100-hour moving average since June 13 and below its 200-hour moving average since June 12. Staying below is more bearish. Another key level would be the 160.21 level. That level corresponds with the high-priced on back to April 29 when the Bank of Japan intervened in the currency markets. That level was also near low prices from last week on June 27 and June 28.

• EURUSD: The EURUSD as pushed through the cluster of moving averages including the 100 and 200-day moving averages between 1.0788 and 1.0793, the 200-bar moving average on the 4-hour chart at 1.0787. Finally, the price is also above the high of the swing area up to 1.08036 (see yellow area and moving average lines on the chart below). Staying above that cluster of technical levels tilt the bias more in favor of the buyers in the short term at least.

• GBPUSD: The GBPUSD is moved higher and test the high of a swing area up to 1.2777 (see yellow area and read numbered circles on the chart below). In the process the price is surging away from its 100 and 200 bar moving average is on the four hour chart at 1.2689 1.2714. If the price can get above 1.2777, that would open the door for additional upside momentum.

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