December 9, 2022

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Dollar moves a bit higher after FOMC decision on the first move

2 min read

Dollar moves to new day highs for the EUR, GBP, AUD and NZD but retraces some of the gains

The dollar moved a bit higher after the FOMC decision on the first move. The greenback traded to a new day highs versus the EUR, GBP, AUD and NZD. The dollar stalled just ahead of the high versus the CAD.  

However since the first move, the dollar has retracing some of the move higher. 

For the EURUSD, the price moved down to test the low from yesterday at 1.17708 and bounce back up toward the 100/200 hour moving averages at 1.1790. The price is trading just below that level I.1787. A move back above the moving averages would be more bullish

The GBPUSD fell to a low of 1.3841. That was just below the earlier low for the day at 1.3844 (not by much), but short of the highs from Monday and Tuesday near the 1.3830 level. The current price is back up to 1.3858 which is just below swing lows from the Asian/early European session at 1.38616 and the swing high from July 16 near the same level.  For the most part, the pair’s price remains between the swing low and swing high for the day

The USDJPY has moved above its 100 hour moving average at 110.175 and traded to a new intraday high of 110.28. The 50% retracement at 110.357 still needs to be broken and stay broken for the buyers to take more control.  It will take a move back below the 100 hour moving average and then the 200 hour moving average at 110.04 to tilt the bias more to the downside. 

The USDCAD remains in it’s 82 pip trading range over the last 5+ trading days. The high price reached 1.26019 which was short of the high for the week at 1.2606 and still below the 200 day moving average at 1.2606 and the 200 hour moving average at 1.2614. The price has moved back down and trades just above the 100 hour moving average at 1.25685. The midpoint of the July trading range comes in at 1.25543.  A move below that midpoint level should tilt the bias more to the downside.

  • The S&P is trading near unchanged. It was down 6.26 points just before the decision
  • the Dow is down -89 points. It was down -142 point just before the decision
  • The NASDAQ index is up 84 points. It was up 62 points just before the decision
  • Tthe 10 year note is trading at 1.253% after moving up to around 1.275% soon after the release.
  • WTI crude oil futures are up 1.14% at $72.47. The price is trading at $72.32 just before the release.

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