Dollar Moves Lower At The Time Of PMI Release
The US dollar has weakened following the release of disappointing Flash PMI data. This has caused yields to fall, at least in the short end. US stocks are mixed, with the NASDAQ slightly higher on account of the weaker dollar and lower yields (even though the data was disappointing – sometimes bad news can be good news).
The EURUSD has move back above the July 14 low at 0.91515. The next upside target comes near the parity level. The high price has reached 0.99896 so far and currently trades at 0.9978
The GBPUSD has moved back above the swing lows from July, currently trading at 1.18475 on the follow-through buying. The 100 hour moving average is still some 50 pips away at 1.1890. Support for buyers is now at the 1.1803 area.
USDJPY: The USDJPY has move back below a swing area between 136914 and 137.152. It looks down toward its 100 hour moving average 136.373 as the next downside target. The 100 hour moving average is currently providing some resistance but a break below that level would target the lows from last week.
USDCHF: After breaking above the 100 day moving average with momentum earlier in the European session, the USDCHF has move back below it. The 100 day moving average comes in at 0.96515 and the close yesterday was 0.9644. If the price of the USDCHF falls to 0.9642, that would snap the string of six consecutive days of gains.
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