Kickstart the FX trading day for Oct 18 w/ a technical look at the EURUSD, USDJPY &GBPUSD

TGIF.

The USD is trading lower to start the last trading day of the week.The EURUSD and GBPUSD are higher. The USJDPY is lower. What are the technicals are driving each of the major currency pairs. I will outline them in the video above.

Below is a written summary:

EURUSD: The EURUSD is rebounding after reaching the lowest level since August 2 yesterday and bouncing into the close. The move to the upside is taken price closer to a very key technical area defined by the 200-day moving average, a swing level, the 61.8% retracement of the move up from the July low, and now the falling 100-hour moving average. All those levels, between 1.0871 and 1.08746. For traders the technical decision is “stay below that cluster of technical levels keeps the bears in firm control”. Conversely, “move above and the buyers are winning at least in the short term”. On the downside watch 1.08248 move below that level and we could rotate back down toward the August low of 1.0777.

USDJPY: For the USDJPY the best technical tool in play is its 100-hour moving average currently at 149.615. The last three trading days has seen the price approach that moving average and try to get below but only with limited success. Earlier today at session low state moving average was tested once again and found buyers. The technical decision for traders is if the price can stay above that level than the buyers remain in firm control. Move below and then extend below its 200-hour moving average at 149.19 would shift the short-term bias back to the sellers.

GBPUSD: The GBPUSD moved down toward key support against its 100-day moving average and 61.8% retracement of the move up from the August low. About those levels come in at 1.2958 and the low price from yesterday’s trade reached 1.29729. The subsequent balance has taken the price back above the 50% of that move at 1.30488. The current price is trading right around that level. On the hourly chart today, the price moved back above its 100 hour moving average of 1.3033 and also moved above its 200 hour moving average of 1.3053. However after peaking at 1.30704, the price has returned back between the two moving averages. Traders in the short term will be looking for a break of the 200 hour moving average above should increase the bullish bias, or below the 100 hour moving average to increase the bearish bias.

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