The USD moved higher on the back of the core PCE data within the US GDP report. However, those gains have nearly been erased. Although the yields are still higher, they are off their highest levels. US stocks have also erased some of their declines with the NASDAQ index now down -1.10% or -167 points.
- At session lows, the NASDAQ was down -368.83 points.
- The S&P index was down -81.04 points at session lows. It is currently down -38.39 points.
EURUSD:The EURUSD moved down to test its 100 hour moving average (blue line in the chart below) after the higher PCE data. That support level did hold support. The price has now moved back near the high for the day at 1.0739. The current price is trading at 1.0737. The 50% midpoint of the April trading range is at 1.07425. Get and stay above those levels would be more bullish.
GBPUSD: The GBPUSD moved down to retest the broken 38.2% retracement after the GDP data at 1.2455. Buyers leaned against the level and have now pushed the price back up toward its high for the day in the process, the price is now moving back above its 100 bar moving average on the 4-hour chart at 1.25133. The high for the day reached 1.25244 right after the data release. Move above that level and traders would target the 61.8% retracement at 1.25519, and the 200-day moving out at 1.25597.
This article was written by Greg Michalowski at www.forexlive.com.
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