Technical Analysis

Up and down volatility as markets struggle with a directional bias

Dollar moves higher and heads back down. Stocks mixed. Gold moves back higher after a dip. Yields move lower after rise

The markets are fluctuating after the CPI data earlier today, 

Forex:

The USD initially moved higher after the report, but has seen that those moves reverse and the dollar move lower.  

EURUSD rose to a new high but stalled just ahead of the 200 hour MA again at 1.1572. The high price reached 1.15701. It trades at 1.1563 currently.

USDJPY rose to eight new high at 113.798. That took out the high from yesterday at 113.73. However the price has since reversed back to the downside falling to 113.336. That just took out the earlier swing low 113.341. The price is currently trading at 113.448.

GBPUSD move below its 200 hour moving average near the 1.3600 level soon after the report, but rotated back to the upside extending back above its 100 hour moving average at 1.36129 in the process. The price high just reached 1.3646. That took out the earlier session high at 1.3643. However the price has stalled within the swing area between 1.36403 and 1.3653 once again.

In other pairs, the USDCHF move back below its 100 and 200 hour moving averages which are near converged at 0.9282. The current price trade at 0.9266. The AUDUSD fell 

briefly below its 100 hour moving average at 0.7332 after the CPI data but has since bounced back to a new session high of 0.7364. The price is currently at 0.7360. 

In the US debt market, the 30 year yield is now down -6.6 basis points at 2.039%, after rising to a high yield of 2.107%. The 10 year yield is down -4.2 basis points at 1.538%. It peaked at 1.602%.

US equities now see the Dow stocks moving down sharply. The NASDAQ index hold onto a small gain while the S&P index is also moving lower. All those indices moved lower initially after the CPI, then rebounded back higher and are now rotating back to the downside in up and down trading volatility.

  • Down -250 points or -0.73% at 34128
  • S&P index -18 points or -0.42% the 4333
  • NASDAQ index up 16 points or 0.11% 14479.67

The price of gold opened the New York session down around $16. Move back closer to unchanged at is now back up $24.35 at $1783.98

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