Kickstart your forex trading on October 12 with a technical look at the technicals driving the EURUSD, USDJPY and GBPUSD.
EURUSD: The EURUSD has moved lower after the stronger-than-expected CPI data and in the process the price move below its 100-hour moving average at 1.0585. The price did stall at the broken 38.2% retracement of the move down from the September 12 high at 1.05709. Those levels will be the barometers for more bullish above/more bearish below. On a break lower (below 1.05709), a swing area between 1.0551 and 1.0557 will be targeted followed by the 200-hour moving average of 1.05445. The price traded briefly below the 200-hour moving average on Monday, but most of the price action has been above the 200-hour moving average this week. The fall to the downside reestablishes the 1.0610 area (from 1.0608 to 1.0616) as resistance/risk for USD buyers in the pair. The price should not trade above that area if the sellers are to remain in control.
USDJPY: The USDJPY moved higher at the CPI and traded to the highest level this week. The next target comes at the high from last Friday after the US jobs report. There is a swing area between 149.476 and 149.545. Getting above that area opens the door for months toward the extremes including the 150.00 level and the 150.15 swing high from last week. On the downside, the low price today and a low corrective price yesterday stalled against the rising 100-hour moving out of 148.944. It would take a move below the 200-hour moving average at 149.06 and that 100-hour moving average to tilt the bias in the favor of the sellers.
GBPUSD: The GBPUSD moved lower after the CPI data and in the process has attested the rising 100-hour moving average of 1.2255. The buyers have leaned against that moving average but at the same time remain below a swing area at 1.22614 and 1.22758. Staying below 1.22758 given the selling today is what traders will look for in the short term. Moving above the 50% of the move down from the September 11 high at 1.22919 would frustrate sellers in the pair (and likely lead to covering to the upside). On the downside, breaking below the 100-hour moving average and the broken 38.2% retracement at 1.22316 of the same move down (and a swing area low at 1.22193) would have traders targeting the 200-hour moving average at 1.21907.