The initial reaction was to the downside at the start/beginning of the Chair Powell Q&A. Then the dollars started to revert back higher after Powell said they may have take the terminal rate higher.
Stocks reversed. US yields moved back higher. The dollar moved higher as well
- EURUSD: The rise in the EURUSD moved back toward the 50% midpoint of the 2023 trading range at 1.075058, and the swing area between 1.0760 and 1.0775. The high price reached 1.07659 and started to run back to the downside. The current price is trading at 1.0690 back near the 61.8% retracement of the same 2023 trading range. The price is also below the swing area between 1.0711 and 1.07243.
EURUSD retraces the run higher
- GBPUSD: The GBPUSD raced higher, but fell short of the 38.2% of the move down from the Thursday high at 1.2128. The high price reached 1.20944 before rotating back to the downside. The high price reached 1.20896 and rotated back to the downside. The price is back near the lower swing area 1.1991 and 1.2010. Move below and the 200 day MA is back in focus at 1.1951
- USDJPY: The USDJPY moved down to test the 100 hour MA on the initial comments, then snapped back higher to retest the swing area between 131.297 and 131.567. Move above it more bullish.
USDJPY snaps back higher
This article was originally published by Forexlive.com. Read the original article here.