The USD is mostly higher as traders navigate a slow trading session. The upcoming ADP employment report is expected to show a gain of 117,000 jobs in May, compared to 109,000 in April.
Technical Analysis of Major Currency Pairs
In the EURUSD pair, trading has remained below the 100-hour and 200-hour moving averages at 1.1633 and 1.1639, respectively. Attempts to rally have stalled near a resistance area, allowing sellers to push the price lower to 1.1606, below Monday’s low. The next significant support zone is between 1.1576 and 1.1586. The bias remains downward as long as the price stays below the converged hourly moving averages.
The USDJPY tested the key psychological level of 160.00, seen by many traders as a potential intervention threshold for Japanese authorities. The pair reached a high of 159.99 before sellers pushed it below the 100-hour moving average at 159.55. However, momentum slowed before reaching the 200-hour moving average at 159.36, and the pair has since rebounded towards the swing area between 159.70 and 160.00. A sustained break above 160.00 could trigger further buying, but intervention risk continues to temper enthusiasm.
In the GBPUSD pair, the price briefly surpassed the 100-day moving average at 1.3476, but buyers could not maintain the momentum past the 50% retracement level at 1.3480. This failure led sellers to push the pair lower towards a support cluster formed by the converged 100-hour and 200-hour moving averages near 1.3451. The pair has fluctuated around this support zone as momentum fades. On the upside, the 100-day moving average and the 50% retracement remain significant resistance levels, while a break below the 200-day moving average at 1.3420 would strengthen the bearish outlook.
Traders are closely monitoring the ADP employment report for insights into the job market and potential implications for interest rates.
You can access our other news on Forex markets and global market developments here.
