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The Dow closes early today as the traders start an early weekend with their families. The Dow closed down 154 points.  This sent the dollar a bit higher but activity has died down quite a bit.  The S & P is down 19 points today.  The Nasdaq is down 37.6 points. Oil is down $2.20.

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The dollars moves in NY on the back of the stock markets rally from lows on the opening brought the major currency pairs back to the midpoint of the weeks trades.  The levels seems to have slowed the momentum of the corrective moves this morning and may have set tops/bottoms in the respective pairs. 

The EURUSD tested the 50% Retracement level at the 1.4986 level. Support comes in at hte 1.4949 level now where 200 hour MA (green line ) and 38.2% retracement is found.  

The GBPUSD tested the 50% retracement level at the 1.6507 level.  Support comes in at 1.6451 now.

The USDJPY tested the 50% retracement at the 86.98 level.  Support comes in at 86.47 now for the pair.

The USDCHF tested the 50% retracement at the 1.0057 level. Resistance comes in at 1.0074/76 and 1.0090 now.

The 200 hour MA and the 38.2% retracement level of the move down from the November 25th high comes in at the 1.4949 level.  Look for sellers against the level. A break would be encouraging however with the next target looking to 1.4986.  Support now comes in at the 1.4920 level where the 200 bar MA on the 5 minute chart is found. 

The USDJPY is testing the 50% retracement of the move down this week.  The Monday high was at 89.17.  The low reached 84.80.  The midpoint comes in at the 86.98 level.   Watch this level

The forex market remains volatile as the stock market rebounds from the lows and is only down about 180 points.  The rebound (or lack of additional selling) has given the dollar bulls a reason to cover.  As a result, the GBPUSD has moved back above the 100 day MA at the 1.6411 level today.  The next target comes in at the 38.2% retracement at the 1.6450 level.  This level is being tested now.  Watch this level.  Volatility continues.  A break above targets the 1.6506 level.  On the downside support comes in at the 1.6411 level now at the 100 day MA. This level remains a key level for todays trade.

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