Dollar rebounds modestly
EURUSD. The EURUSD peaked near the low of a swing area between 1.18507 and 1.18568. The high price reached 1.1848. The move to the downside after the ISM report sent the price toward a lower swing area between 1.18243 and 1.1830. The low price reached 1.18327. Those swing areas now define the trading range's support and resistance. Traders will be eyeing the next shove.
USDJPY: The USDJPY dipped briefly below its 200 hour moving average at 109.90 reaching a low of 109.875 on the move lower today. The move back to the upside post the ISM has now taken the price back above its 100 hour moving average at 109.971. The area between the 200 hour moving average at 109.90 and the 100 hour moving average at 109.971 remains a key support/bias defining area for both buyers and sellers. Stay above and the dip buyers are still in the game. Move below and the bias tilts more to the downside with focus returning to 109.75 and the 100 day moving average at 109.665. On the topside traders will look at the 110.15 level (61.8% retracement of the range since August 11) as the next upside target.
USDCAD: The USDCAD has retraced earlier declines. Those declines took the price back down to test the swing area between 1.25778 and 1.25962. As opposed to yesterday and Monday when the price had dips below the low extreme of that swing area, today, the buyers leaned against the low of the swing area (risk focus buyers). The move to the upside after the ISM data has taken the price closer to its 100 hour moving average at 1.26255. Yesterday and again today, traders tried to extend above that moving average but could not sustain momentum toward the higher 200 hour MA (green line). Ultimately if the buyers are to take more control and swing the bias more to the upside at least in the short term from a technical perspective, getting above each of those moving averages is required. Failure and the sellers still holding the stronger hand.
GBPUSD. For the GBPUSD, the move to the upside that the price between the swing area defined by swing highs and lows, the 50% retracement and the 200 day moving average. That area came between 1.3790 and 1.38045 high price reached. The high price reached 1.37976. The rotation of the ISM data has taken the price back down below the swing area. Will traders now lean against that level? That will the the risk/bias defining area going forward. If the prices to move higher, getting and staying above is required.