Kickstart the FX trading day with a technical look at the EURUSD, USDJPY and GBPUSD

In the kickstart video for January 14, I take a look at the 3 of the major currency pairs ahead of the PPI data at 8:30 AM ET.

The expectation is for 0.3% for the headline and the core measure. How those numbers come out, will influence the market price action in the 3 major currency pairs.

What traders can do is prepare for those contingencies and outline the key levels in play. If you know the roadmap you can better react to the price action from the news, as well as protect from being wrong.

In this video I outline the key levels in play and explain why they are important for you as a traders.

EURUSD

The EURUSD moved higher late yesterday on reports that Trump tariffs could be phased in slowly which helped to weaken the USD. The price high had a limit, however, with the pair reaching to the 100 hour MA (blue line) and stalling. After correcting lower, there was a rebound which once again tested that 100 hour MA. Sellers leaned again. That increases the levels importance today. Move above is more bullish would have traders looking toward the 200 hour MA at 1.03028. Conversely, stay below and the targets will be at 1.0223 with a break looking toward the low from yesterday

USDJPY: The USDJPY sellers had their shots both yesterday and today on the break of the cluster of MAs. Each break failed. IN trading today, a dip found buyers at the lowest of those MA – the 100 bar MA on the 4-hour chart – at 157.41. That is close support that if broken, I would look for more downside probing today.

Conversely, the price is now above the high of those MAs – the 100 hour MA – at 152.87. Stay above and a run back to the high from Friday would be eyed.

GBPUSD: The bias in the GBPUSD is to the downside despite the move higher today. That corrective move extended to the low from last Thursday and extended briefly above it, and did the same later in the European session. However, the falling 100 hour MA at 1.22525 did give traders a cause for pause and that MA will be a key target that would need to be broken to increase the bulls chances for more upside probing. Absent that, and the sellers are still in the game, and still in control.

On the downside, there is a swing area between 1.2038 to 1.2068. That corresponds with swing lows from october of 2023.

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