Technical Analysis

The USD is lower on PCE data. What are the technicals telling us in EURUSD, USDJPY &GBPUSD

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The US PCE data was lower than expectations and it helped to push the USD lower.

For the EURUSD, the price has moved above a swing area between 1.1181 and 1.11897. The next targets are at 1.1200 and the high for the week at 1.12130. Getting above those levels will have traders targeting the 61.8% retracement of the move down from the 2021 high to the 2022 low. That level comes in at 1.1271.

The USDJPY in a volatile trade today, first extended to a high of 146.519, before reversing hard that took the price below the 100 hour MA at 144.078 and the 200 hour MA at 143.33. The PCE data has now taken the price into a new below for the day at 148.45. Going forward today, the 200 hour moving average will be the barometer for short-term bias. Stay below 143.33, and the sellers remain in firm control. Move above and could be some disappointment on the failed break at least in the short term for traders. More conservative risk level were sellers would be near the 100 hour moving average at 144.078.

The GBPUSD has entered into a swing area on the weekly chart, only back to 2018 between 1.3411 and 1.3511. The high price today reached 1.3427 which is still short of the high prices from yesterday at 1.34334, and from Wednesday at 1.3429. Getting above both those levels is needed to open the door for further upside toward the 1.3511 level.

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