USD weakness has been the story so far today. In fact, it´s been the theme of the forex market since this year started and it became even more obvious after the first official press conference of the new president-elect Trump.
So, this morning has been all about USD sellers. The good sign for USD bulls though is that yesterday´s low in the USDX (USD index) hasn´t been reached. This means that this latest wave of USD selling might come to an end soon.
That´s the reason we opened that GBP/USD signal a while ago. The 100 SMA (smooth moving average) on the hourly chart in red did a good job by stopping the GBP/USD buyers. The price stalled right there and they got scared, which enabled this small retrace.
This pullback today was more than enough for our forex signal.
Now we´re standing just above the 100 simple moving average in green, but the take profit has already been triggered in that forex signal.
EUR/USD and USD/JPY have failed to at least threaten the support/resistance, which was put in place yesterday and looks like they are about to reverse as well now. The commodity currencies, on the other hand, have been in a lethargic sleep today.
The hourly USD/JPY chart looks tempting for a short term signal, but the US economic data in about an hour is keeping me from opening it. The stochastic indicator is oversold on the H4 forex chart and the 20 SMA in grey is providing support.
Here is a trade opportunity.
But as I said, I´m staying out of it for the time being. If you have enough risk appetite, you might as well take this trade. By the way, this forex pair is about 100 pips above the low last night when we posted our USD/JPY update. So, if whoever used our trade idea yesterday must be sitting on some nice profit by now.