Flight into the relative safety of the USD
The USD is moving higher as stocks move lower and fears of omicron send commodity currencies lower. The GBP is also getting hit to a new low vs the USD on the day.
The USDCAD fell earlier in the session as oil rebounded from recent lows and stocks climbed, but reversed course after bouncing off its 200 hour moving average. The pair got a bigger boost after oil prices started to come down on the back of the omicorn news (rightly or wrongly). The pair has been up for six straight hours now and looks to test the high price from yesterday at 1.28362.
The AUDUSD stalled near the 0.7170 level and ahead of the falling 200 hour moving average currently at 0.71794. The price for the pair has not traded above its 200 hour moving average since November 2.
The will back below the 100 hour moving average helped to reset that level as resistance. The price – like the USDCAD – has been down for six consecutive hourly bars and looks toward a swing low from yesterday near 0.70919. A break below that would target the low from yesterday at 0.7062. That level was 10 pips above the 38.2% retracement of the move up from the 2020 low at 0.70525.
Sellers are in control.
The NZDUSD was able to extend above a swing area between 0.68548 and 0.68611 but failed on that break, and also could not get to its falling 200 hour moving average currently at 0.68788. The last time the price traded above that moving average was on November 9.
The subsequent fall has now taken the price to a swing area between 0.6802 and 0.68087, and also below its 100 hour moving average at 0.68255. The 100 hour moving average is now risk for sellers (the sellers are in control). A break below 0.68025 would open the door for a move toward the low from yesterday at 0.67716.
The GBPUSD at the New York session high stalled against its 200 hour moving average and 50% retracement of the move down from the November 18 high near 1.3351. The subsequent fall saw the price move back below the 100 hour moving average and more recently below a swing area between 1.32766 and 1.32912. That areas now close risk for sellers. The sellers are in control.