The NY End of Day/End of Year Review and Preview
EURUSD moves toward midpoint of the days range at 1.2950
AUDUSD tests its 100 day MA at 1.0197
USDJPY tests 100 day MA at the 77.17 level
The USDJPY hase been pressured as the dollar loses value against all major currencies (see chart below). However, the price is testing the key 100 day MA and should find some profit taking against the level. (77.17 is the level). A break below the level should not be ignored however, as liquidity conditions remain limited and a break of key technical level should solicit stops.
GBPUSD also at weeks midpoint
The GBPUSD is also up. This pair is up sharply today and like the EURUSD tests the midpoint of the weeks trading rangee at the 1.5525 level. The 100 hour MA comes in at the 1.5542 level and this is the next upside target for the pair.
Looking at the daily chart for the pair, the GBPUSD has spent the last month of trading moving up and down. Yesterday the pair moved below the November/December low and failed to develop the expected momentum. When the price can not go down, it goes up and with liquidity conditions dried up, it has not taken much. In addition, the weaker housing data out the UK today failed to lead to a lower move. As a result, the squeeze is on.
EURUSD tests midpoint of weeks range at 1.2969
The midpoint of the weeks range is being tested at the 1.2969 level. Traders seem to be caught short and forcing the squeeze in the liquidity starved market. The 100 hour MA is still a distance away (blue line in the chart above) at the 1.3002 level. This along with the 61.8% of the weeks range at 1.2296 are the next upside targets for the pair.
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The NY Opening Review and Preview for December 30th 2011
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