The USD is trading lower against the three major currency pairs—EURUSD, USDJPY, and GBPUSD—to kick off the North American session.
The EURUSD has moved higher over the last hour of trading and, in the process, climbed back above its converged 100- and 200-hour moving averages at 1.1632. The pair reached a session high of 1.1645. Staying above those key moving averages, along with the 50% midpoint at 1.16287, gives buyers the technical edge in what has otherwise been choppy, two-way trading. Earlier today, sellers tested but failed to break a longer-term trendline support level near 1.1595. That failure gave buyers the green light to push higher. On the topside, the next key target comes in a swing area between 1.1655 and 1.1667. A break above that zone would open the door toward the 200-day moving average at 1.1681 and the 100-day moving average at 1.16965.
In USDJPY, comments from Bank of Japan Governor Ueda hinting at the possibility of a rate hike at the next meeting initially helped push the pair lower from the 160.00 area. However, after briefly moving below the rising 100-hour moving average at 159.699, sellers lost momentum and buyers stepped back in, driving the pair back toward the 160.00 level. That round number remains a focal point given ongoing intervention concerns. Japanese officials continue to signal their willingness to tighten policy or intervene if necessary, but from a technical perspective, buyers remain in control while the price stays above the 100-hour moving average and the 200-hour moving average at 159.470.
The GBPUSD has also regained ground, moving back above its converged 100- and 200-hour moving averages near 1.3450. The recovery came after sellers once again failed to sustain a break below the 200-day moving average at 1.34202. Over the last seven trading days, the pair has traded below the 200-day moving average on six occasions, yet each move failed to generate meaningful downside momentum and was followed by a rebound. On the topside, the next key target area comes between the 100-day moving average at 1.34757 and the 50% retracement level at 1.34803. A move above that zone would strengthen the bullish bias and shift more control back to buyers.
