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The dollar pared overnight gains after tame US consumer-price inflation data on Friday. The lower-than-expected CPI calmed worries that the Federal Reserve is going to raise its federal funds rate after yesterday’s discount rate announcement. Still, the Fed’s normalization of lending means that quantitative easing is winding down and the…

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As per the prior post, the USDCHF fell to and found support at the 100 hour MA level (see prior post).   The market has paused at the level as it decides the final direction into the Friday close.  Traders who are short from above (i.e. a break of the 1.0825 support or above – see earlier post) are in control as the weekend approaches.  Taking profit or partial profit at the level is an option and restart on Monday.   Doing so, keeps something in the game and could benefit from any weekend tension in the Middle East (should there be any).  From a standing start, it is best to leave well enough alone and look for a better opportunity after the market opens.

Stops triggered and the price moves to 1.0387. Resistance now at 1.0405.

The EURUSD broke above 1.3584 but has come back below the level.  The failure to find additional momentum should solicit profit taking sellers.   Support at 1.3553.  A move back above the 1.3592 level would confirm the upside again. The 1.3584 level remains a key “remembered” price level for the pair.

A move above 1.3587 would likely level to a further move toward the 100 hour MA at the 1.3616 level.  Watching the level closely.

The GBPUSD is approaching resistance at the 1.5459 level. The price represents the 38.2% retracement of the move down from the Discount Rate hike.  The level is also a correction high level from earlier in the trading day today.  We should see profit taking sellers against the level with stop so na move through the level.

The USDCHF fell below the 1.0825 level as per the prior post (CLICK HERE) and moved lower. THe price is now down testing the next target support at the 1.0787 level. The 100 hour MA at the 1.0767 is also a target level.  Stops on the upside  are still focused at the 1.0819-25  area.

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