The NZD is the strongest. The GBP is tumbling and the weakest as NA traders enter for the day.

Technical Analysis

Author: Greg Michalowski | forex

USD is mixed

The GBP is getting a pounding as NA traders enter for the trading day.  


Cable is down against all the major currency pairs and the pairs are trending. The NZD is the strongest currency, with the GBPNZD leading the way. The GBPNZD stalled at the topside trend line and fell below the 100 bar MA on the 4-hour chart at 1.85370.  That is now risk for shorts.  The pair remains above a lower trend line at 1.8394. The 200 bar MA on the 4-hour is at 1.83457 (green line in the chart below). Those are downside targets on a continued run to the downside. 


The GBP pairs are leading the way with regard to volatility.  In the lower chart below, most of the pair have already reached((or are close) to the 22 day average trading ranges (about a month of trading).  Most are also trading at extreme levels. So they are doing a good trending job.  Sellers of the pound are in control. 


In other markets, a snapshot shows:

  • Spot gold up $3 to $1294.60
  • WTI crude oil down -$0.72 to $50.58. 
  • US yields are lower: 2 yar 1.508%, down -1 bp. 5 year 1.9396%, down -1.6 bp.   10 year 2.3320%, down -1.6 bp.  30 year 2.8705%, down -1.1 bp
  • The US stocks in pre-market trading are down a touch. S&P futures are down -4.50 points. Dow futures are down -21 points and Nasdaq futures are down -3.75 points.   
  • European stocks are mixed. Dax is unchanged. Cac is down -0.3%. UK FTSE is up +0.4%.   Spain ibex down -0.1%. Italy FTSE MIB down -0.4%