Bullard comments send the dollar higher
The GBPUSD has resumed its move lower after Fed’s Bullard painted a more hawkish view of Fed policy.
The pair yesterday moved below its 100 day MA at 1.39346 yesterday on its way to a low at 1.38948. There was some additional support at the 1.38847 level (see blue numbered circles). The price moved off that low and did move briefly above the 100 day MA in the Asian session, but the momentum higher could not be sustained and selling resumed.
The London session has seen up and down activity, with the price moving being, above and now back below the swing area at 1.38847 to 1.38948. That is now close risk for sellers.
The next targets off the 4-hour chart looks toward 1.38346 to 1.38414, a swing level at 1.38228, and then another swing area between 1.37986 to 1.38087 (see green numbered circles).
This week the pair moved outside the up and down range that confined the market going back to mid-May (see Red Box in the chart above). The pair also moved below a key swing area just above the 1.4000 level (1.4004 to 1.4014), and stay below that area on the modest corrective move higher (red numbered circles in the chart above). Those moves gave the sellers more confidence. The 100 day MA became the next technical level to get to and through, and although the price moved above the level today in the Asian session, the move did not last long. Sellers in control.
- Dow -270 points
- S&P -27 points
- Nasdaq -69 points
- Gold up $3.70
- 2 year up to 0.2359%, up 2.6 bps
- 10 year 1.5039%, up 1.6 bps