The U.S. dollar began the North American session on the defensive, but in today’s tightly confined trading environment, momentum and bias can shift quickly. Over the past several days, both the EURUSD and GBPUSD have been oscillating around their converged 100- and 200-hour moving averages, using those levels as key barometers for short-term direction. Meanwhile, the USDJPY has maintained a more bullish tone, holding above its hourly moving averages and grinding higher toward the important 160.00 level.
As the North American session progressed, however, the dollar reversed course. The move lower in the EURUSD and GBPUSD faded, allowing both pairs to rotate back below their 100- and 200-hour moving averages, shifting the near-term technical bias back toward the sellers. At the same time, the USDJPY resumed its climb and is once again testing the closely watched 160.00 level, an area traders continue to view as both a technical and psychological hurdle.
In the video above, I take an updated look at the three major currency pairs as trading winds down for the day. Which technical levels are now in play? Where are the key risk-defining areas for buyers and sellers? And what should traders be watching as the market heads into the next trading session?
