EUR/USD Re-Testing Highs

So far this session the pair has traded between 1.29723 and 1.30072; currently testing resistance at the highs. The market is showing some risk appetite in recent trading with the FTSE +63.69 and Dax +83.31. If support holds the lower target is back to the 38.2% line. A move higher may bring us to 1.3025; a support level from December 21st to the 26th.





Kiwi testing daily trend line resistance

The risk pairs are trading on highs with Dow futures currently up 200 points. The New Zealand dollar (NZD) has traded continually higher against the USD today; currently testing trend line resistance around .788o with the next bullish target at .7907. If resistance holds, the daily target to the downside is the 50.0% line.



EURUSD tests support against 200 hour MA in early NY trade.



The EURUSD rallied today on the back of better data in Europe  but has found some profit taking as NY enters. The price is testing support at the 1.3010 level which is the 200 hour MA. Below is the 38.2% of the move up from yesterday’s low to the high today. That level comes in at the 1.30038 level.  Stay above and the bullish trend continues. If the price moves below, look for  the bullish bias to be a little tainted as traders search for the rhythm of the market in the new year.

Chatter of a possible French downgrade has been in the market which gives the buyers a bit of a cause for pause, but so far the upside is the preferred direction.  On the topside. the 1.3052 level (trendline on the hourly chart above) and then the 1.3077 level is the next resistance (see channel on the daily chart below).



USDJPY moves closer to the November (i.e., post BOJ intervention) low



The USDJPY contined its move down after falling below the key 100 day MA on the last trading day of the year. The next key support target for the pair comes in against the 76.567 level which was the low following the BOJ intervention in October. The market is likely to pause against the level on the first test. However, on a break, expect stops to be triggered.  I will be watching the  76.83 are for signs a bottom may be forming. This is the topside trendline on the hourly chart below. A move above, gives shorts a reason to cover and perhaps some dip buyers a reason to stick their toe in the water.  The high for the day at the 76.95 and then the 77.17 level would be the upside targets.  The 77.17 area represent the 100 day MA level (blue line in the chart above) and the 38.2% of the move down from the December 28th high to the low reached today (see hourly chart below).



Turkish central bank in the market selling dollars

This is according to traders.



The USDTRY reached new highs last week as traders exited the risky currency pairs.

Today, the pair has resistance at the 1.8790-1.8827 level.  The 1.8790 is the 38.2% of the move up from the December low. The 1.8287 is the underside of the upward sloping trendline.