September 22, 2023

USD runs higher as yields push higher

The USD has run higher with the run up in yields. The USD is now the strongest of the major currencies, while the AUD and CAD are the weakest.


The USD is the strongest of the majors

The US yields are up 6.2 to 8.8 basis points across the curve.


US yields are higher

The US stocks have seen the Dow trade back into the negative (trades above and below in volatile trading) and the S&P and Nasdaq give up most of their early gains.

In the forex:

  • EURUSD: The EURUSD has pushed back below its 100/200 hour MAs at 1.13291 and 1.13251 respectively. . On the 4-hour chart, the pair is testing its 100 and 200 bar MAs at 1.1306 and 1.1297 respectively


EURUSD tests 100/200 bar MA on the 4-hour chart
  • GBPUSD: The GBPUSD has tumbled below its 100 hour moving average 1.3481, and looks toward its 200 hour moving average 1.34384. Below that moving average is the 38.2% retracement 1.34056. That is near the low levels from Wednesday’s trade as well. Stay below the 100 hour moving average keeps the sellers happy.


GBPUSD tumbles below its 100 hour moving average
  • USDCHF: The USDCHF as break above its 100 hour moving average at 0.9149, its 200 hour moving average at 0.9168, its 200 day moving average at 0.91705, and 38.2% retracement of the move down from the December 15 high at 0.91749. The current price has moved up to a swing area between 0.9187 and 0.91903. Move above that level and traders will target the 50% at 0.91976 followed by the 100 day moving average at 0.9210. It will now take a move back below the 200 day moving average and the 200 hour moving average to hurt the technical bias at least in the short term that the 0.9170 area.


USDCHF has a spiked above key technical levels

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