What technical levels are in play to start the NA trading day for November 12

As the North American session begins, the bond traders return after a day off in observance of Veterans Day. Yields are higher to start their trading week with the 2 year up 6.5 basis points at 4.319% and the 10 year up 6.3 basis points at 4.371%. The 2 year yield has moved to a new high going back to July 31 today (4.336%). For the 10 year, it traded as high as 4.773% last week, but fell into Friday with the low reaching 4.558% before bouncing modestly on Friday. That upside has reached 4.64% today – off the low but below the high from last week.

Bitcoin moved to a high of $89,983 today – a new record – but has come off and trades at $86,430 currently. The low reached $85208 today in volatile trading.

Oil is higher after falling over 3% lower yesterday. The price is up 43% or 0.64% at $68.52 currently. The high reached $68.76 and a low at $67.78.

Gold is down another $11 or -.045% at $2607.28. The low reached $2589.80 before bouncing.

In the US stock market, the major indices are marginally higher after record closes across the three major indices. The Russell 2000 which has not reached a high since July 2021 got within shouting distance of it record at 2437.08. The high yesterday reached 2441.72. The Dow futures are imploring a gain of 78 points. The S&P is up 1.65 points and the Nasdaq index is now up 7.91 points.

There will be several Fed speakers today with Governor Waller, Minneapolis Fed Pres. Kashkari, Philadelphia Fed Pres. Parker, and Richmond Fed Pres. Barkin all scheduled to speak

ECB policymaker Olli Rehn emphasized that while the direction of the ECB’s monetary policy is clear, the pace of any changes will be data-dependent. The economic outlook, impacted by a struggling manufacturing sector, has deteriorated. Rehn suggested that if disinflation continues, it could support additional rate cuts, with the ECB potentially moving away from restrictive policy territory by spring 2025. He warned against protectionism, noting that tariffs would have a medium-to-long-term impact and are inherently inflationary. With growth in the euro area expected to remain sluggish and downside risks prevalent, Rehn awaits the December projections for a clearer assessment of the economic landscape.

EURUSD: The selling in the EURUSD continue as a less friendly US with Pres. Elect Trump, spell slower growth with increased tariffs the concern. Technically, the price initially moved higher in the Asian session but found willing sellers near the low of the swing area between 1.0663 and 1.06703. That was swing lows in June 2024. Staying below kept the sellers in control, and they pushed lower. The price has since moved down to a low of 1.0606 which tests the lows from April when a series of swing lows bottomed the pair. Those levels are also the lows for the year (going back to October 2023).

USDJPY: The USDJPY rose yesterday and then stalled in the US session between 153.59 to 153.88 (swing area). Recall, the 153.88 level was a swing high from July 31. The highs from October 28 and October 29 was at 153.88 too. Today, the price moved lower and below the swing area low, BUT found support at the 61.8% of the move down from the July high. That level comes in at 153.397. Going forward, that hold increases that technical levels importance as support. Move below would increase the bearish bias in the short term at least.

On the topside, the price has now moved back above the 153.88 level (bullish). If the price can stay above that level now, that would be the most bullish technical scenario as buyers show their strength on the break. On the topside, the 154.54 up to 155.09 would be the next target area to stretch towards. Get above that area over time, and it adds to the bullish bias. Buyers making a play. Can they keep the momentum going?

GBPUSD:The GBPUSD fell below the lows from the last 2 weeks (last week low was at 1.28329) and sellers jumped, pushing the price through the 200 day MA at 1.28178. The breaks are more bearish and the low price reached 1.27915 and has bounced. The price has traded above and below the 200-day MA at 1.28179, but has so far stayed below the low from last week at 1.28329. If the price moves back above that level and momentum back to the upside is able to get above 1.2844 and the 50% of the move up from the April low at 1.2866, the buyers are showing some strength and the sellers will start worrying about the failures more and more. Conversely, if the price can stay below the 1.2832 and 1.2844 that keeps the sellers confidence high, but gettng below the 200-day MA is still required again. The price is currently trading near the 200-day MA but remains below 1.28329.

USDCHF: The USDCHF extended above the 200 day MA at 0.88176 and also a swing area from 0.88187 to 0.8825. That was a bullish move and the price moved to a high of 0.88303 but failed. The price is back below the 200 day MA and swing area. The price is trading near 0.8800 (0.8802 is the low). ON the downside the 50% is at 0.87986. If that is broken, then the swing area, the 200 day MA and the 50% failed. That should give buyers cause for pause as the buyers had their shot, and they missed. But the price still needs to get below 50%.

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