Flight to safety as stocks/terrorist attack/Washington are a concern
The USDCHF is trading to new session lows as stocks continue to fall, the action in Barcelona is being called a terrorist attack, and the uncertainty in Washington weigh on equities.
Trend line above. 100 day MA below
The GBPUSD continues the waffle that has kept the pair confined over the last 2+ days.
Looking at the hourly chart above, the overlay of the 100 day mA at 1.2864 was broken for the 3rd straight day today. The breaks on Tuesday and again yesterday could not muster much momentum and today it was not the exception. The low stalled against the underside of a broken trend line, and we saw a bounce higher. Buyers? Well some are leaning and the failed breaks have to be a concern.
Crude oil down about -$0.20.
The USDCAD is on the move. It trades at session highs. Crude oil is down about -$0.20 currently at $46.60. The low reached $46.46. Oil had a large draw down in inventories yesterday but it did not help prices. Lower oil prices tend to weaken the CAD (USDCAD higher), although that relationship can disengage. Yesterday, crude oil was lower but the USDCAD followed the USD lower.
Careful out there...
The markets are subject/vulnerable to headline news and that can be dangerous to trading as they can happen at any time.
The latest is the Cohn rumors are being denied. That has led to a quick run up back in the USDJPY. The denial is from Axxios reporter on Twitter.
100 and 200 hour MA near day's range midpoint
The 100 and 200 hour MA and the 50% midpoint of the days trading range come in at 110.01-038. The 100 and 200 bar MA on the 5 minute chart are at 109.99 up to 110.038. So that makes the 109.99 to 110.038 an area where the buyers and sellers are neutral for today.
The snapshot of the strongest and the weakest as North American traders enter for the day
The AUD is the strongest currency as the NY traders enter for the day, although most of the gains are vs. the weakest currency....the EUR. The EUR was on a downward tract as CPI remains well below the 2% target. The ECB also jawboned the EUR down in meeting minutes. That helped set the third consecutive day of a lower low for August.
Moves to the 100 bar MA on 4-hour chart.
Later in the new trading day, the Australian employment report will be released. The expectations are for the employment change to show a 20.0K increase. The unemployment rates is expected to remain unchanged at 5.6%.
Holds the 100 bar MA on the 5- minute chart.
The EURUSD is down on the day and trades near the lows. Intraday, on the 5-minute chart, the pair has stalled against the 100 bar MA (blue line). That MA comes in at 1.1711. The 1.1711 is the swing high from August 2015. Key level intraday.
Breaking to new session and below MAs, but rebounding a little....
The USDCAD is trading at new session lows and in the process moved below the 200 hour MA and 200 bar MA on the 4-hour chart at the 1.2700 area. The pair earlier fell below a trend line on the hourly chart and the 100 hour MA at 1.27215. That MA is now risk for shorts.
Trades in an up and down narrow range
Cable is trading up and down today in a narrow 62 pip trading range. The 22 day average range is 89 pips.
The price action has taken the price below the low from yesterday during the London morning session. That low reached 1.12840. The low yesterday reached 1.2846. The low today was the lowest level since July 12th and took the price below the 100 day MA at 1.28598, trend line support at the same level and the 61.8% of the move up from the June low at 1.2847. The problem? Like yesterday, the momentum faded. Sellers were forced to buy back and the move back above the cluster of support.
Housing starts and building permits are lower than expectations
The US housing data today came out weaker than expectations and the dollar retreats a bit, but not much. The DOE inventory data and the FOMC meeting minutes are to come but not until 10:30 AM ET/1430 GMT and 2 PM ET/1800 GMT respectively.