Kickstart the FX trading day for July 1 w/a technical look at the EURUSD, USDJPY & GBPUSD

It is a new trading week, month and quarter. The EURUSD and GBPUSD are higher (lower USD) as the market reacts to elections in France and prepares for the UK election on Thursday. The USDJPY continues its run to the upside with the pair reaching the highest level since 1986.

In the Kickstart video for July 1, i take a technical look at the 3 major currency pairs.

The EURUSD has extended above its 100 bar moving average on the 4-hour chart at 1.07345. That level will be the key short-term barometer for traders today and going forward. Staying above is more bullish. Moving below would put the sellers more in control in the short-term. On the upside, there is a cluster of moving averages between 1.0786 and 1.0795 that will be key levels to get above if the buyers are to take more control in the week and going forward.

The USDJPY has continued its run to the upside, trading to the highest level since 1986. Recall on Friday, the dip to the downside stalled just ahead of the rising 100-hour moving average. The price has not traded below its 100-hour moving average since June 14. That price for the 100 hour moving average comes in at 160.50. It would take a move below that level and also below the high price from earlier this year at 160.21 to tilt the bias back to the downside. Absent that, and the buyers remain in firm control in the trending market.

The GBPUSD moved higher with the EURUSD in the Asian session, and has rotated lower in the early European and NA session. The price has moved below eight 200 hour moving average 1.2665, but stays above its 100 hour moving average 1.2652. Those moving averages will be barometers for the trading day. Staying/moving above each would give the buyers the edge at least in the short term for the pair. UK election will take place on Thursday with all results being released at 5 PM ET/2200 BST.

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