The USD is marginally increased to begin US buying and selling session. What are the technicals saying?

The ECB will announce its curiosity choice imminently with expectations of a 25 foundation level reduce. In the meantime shares are beginning the US session with the Dow down by about -600 factors, however the S&P is up marginally and the Nasdaq can also be up marginally. US yields are increased by a foundation level of two. The USD is modestly increased.

EURUSD: Eyes on ECB price reduce and key technical assist

With the ECB extensively anticipated to chop charges by 25 foundation factors, the EURUSD is buying and selling at 1.1359—nonetheless over 100 pips beneath this yr’s excessive at 1.1473, however nicely above the 2024 low close to 1.zero200, preserving the pair nearer to the excessive finish of its yearly vary.

For a extra bearish technical bias to develop by way of the ECB choice, two key occasions must happen:

1. Break beneath the 100-hour transferring common at 1.13495 – Worth is presently hovering simply above this stage.

2. Sustained transfer beneath the 1.1271–1.1275 assist space – This zone contains the 61.eight% retracement of the vary from the 2020 excessive (at 1.1271) and the July 2023 excessive (at 1.1275).

A confirmed transfer beneath each ranges would seemingly speed up draw back momentum. Control these technical ranges because the ECB price choice approaches.

USDJPY: Bounces off key assist however must clear 100-hour MA to shift bias

The USDJPY dipped right into a key swing space that dates again to August and September, between 141.64 and 141.94. The low prolonged to 141.66 earlier than rebounding modestly.

On the topside, the falling 100-hour transferring common, presently at 142.90, is a key resistance stage. Though the pair briefly broke above it throughout the European session, the transfer lacked follow-through. A sustained transfer above the 100-hour MA is required to tilt the bias extra bullishly.

If that occurs, the following upside targets are:

• 200-hour transferring common at 144.49

• 38.2% retracement of the latest decline at 145.32

There’s a transparent runway for additional upside, however the bulls must reclaim and maintain above 142.90 to open the door.

This text was written by Emma Wang at www.ubaidahsan.com.



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