USD runs back to the downside after brief run higher after PPI

The USD has run back to the downside, after a brief move higher after the higher than expected PPI data:

• GBPUSD: The GBPUSD is extending to a new high for the year and new high going back to July 27 when the price hit 1.2995 (just short of 1.3000). The old high and the natural resistance at the 1.3000 to give traders some cause for pause from a technical perspective, with stops on a break to the upside.

• USDJPY: The USDJPY is testing the 61.8% retracement (again) of the move up from the June 5 low. Yesterday after the US CPI and intervention from the Bank of Japan (?), the price fall did stall at that level. The highs this week in the USDJPY could not extend above the high from last week. The fall below the 100 and 200 bar MA (blue and green lines on the chart below), is a negative tilt but getting below the 61.8% of the last

• USDCHF. The USDCHF today has been able to stay below its 200 bar moving average on the 4-hour chart and 100 bar moving average on the same chart. Bearish. The price on the recent dip fell below the 50% midpoint of the move up from the June low to the July high, but currently trades above below the level at 0.8938. Moving back below the level with momentum adds to the bearish bias.

• NZDUSD: The NZDUSD has had a volatile week, training to the highest level since June 14 at 0.6153, and then falling to a low on Wednesday at 0.60637 (and below the 100-day MA. The ups-and-downs of the late have the 100 and 200 hour moving averages and the 200-bar moving average on the 4-hour chart all near converged near 0.6105. The price has extended higher and moves back toward the 200 bar moving out on the 4-hour chart at 0.61255.

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