The USD is higher to start the new trading day. What are the charts telling traders?

The USD is higher with gains vs all the major currencies to start the US session. IN the video above, I take a look at the 3 major currency pairs – the EURUSD, USDJPY and GBPUSD – from a technical perspective.

EURUSD: The EURUSD tried to extend back above the 200- hour MA at the end of yesterday but could not muster much momentum above the MA before moving back to the downside in the new trading day. The low has nevertheless stalled ahead of the swing lows for the week near 1.1307 to 1.13096.

USDJPY: The USDJPY moved higher in early Asian trading, moving further away from it’s broken 200 hour MA in the process. The pair moved above a swing level at 143.57 to a high of 143.84. The price is consolidating above and below the old high for the week as traders stall the run toward the next target at the 38.2% of the move down from the March high at 144.208.

GBPUSD: The GBPUSD moved above its 100 hour MA at the end of day yesterday but fell back below in the early Asian session . The low overnight extended below the 200 hour moving average currently at 1.3293 buttonlike the break above the 100 hour moving average failed. This week the last three days have seen failures above and below the moving averages as market traders try to figure out the next move. The current price is between those moving averages.

The video above outlines the technical levels that are driving each of those major currency pairs to start the US trading session

US stocks are lower to start the new trading day as markets react and digest the Pres. Trumps April 22nd interview with TIME, President Trump. The article addressed several key international and economic issues.

For one,

• He expressed no or little concern about the bond market turmoil earlier in April, stating confidence in his economic direction.
• On foreign policy, he asserted that Crimea would remain with Russia and maintained that peace is possible even with Vladimir Putin in power (those thoughts were expressed in numerous comments yesterday ahead of the release of the article).
• When asked about potential U.S. involvement if Israel goes to war with Iran, he clarified he didn’t commit to staying out. Trump and Netanyhu are close.
• He confirmed that China’s President Xi had contacted him (again that was a topic yesterday – in fact Adam posted on it HERE).
• He also emphasized that high tariffs—i.e. 20% to 50%—are part of a long-term strategy to bolster the U.S. economy, calling such a scenario a “total victory.” (Will the increase in tariffs lead to a cost push inflationary environment? Will supply shocks prevail?)
• Trump noted upcoming trade deal announcements and reiterated his openness to taxing millionaires.
• He also entertained the oft-mentioned expansionist ideas such as acquiring the Panama Canal, Greenland, and making Canada the 51st U.S. state.

Looking at the US stock market,

• Dow industrial average is down -191 points
• S&P index is down -18.27 point
• NASDAQ index is down -75 points

Shares of Alphabet are trading up 4.09% after better earnings. Intel had better earnings but announced lower guidance. Its shares are down -7.35%

In the US debt market, yields are little changed:

• 2year yield 3.793%, +0.2 basis points
• 5-year yield 3.913%, -1.4 basis points
• 10 year yield 4.277%, -2.7 basis points
• 30 year yield 4.732% -3.3 basement

In other markets:

• Crude oil is trading down 76 cents or -1.21% at $63.03.
• Gold is trading down -$51 or -1.56% at $3296.60. Earlier this week, gold extended to a new record level of $3500 before rotating back to the downside to a low on Wednesday of $3260. The price has since consolidated between around $3250 and $3400.
• Bitcoin is trading up $661 and $94,670.