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Forexlive Americas FX news wrap: Draghi "further stimulus is in the pipeline" hurts EURUSD

Forex trading news and economic data headlines for the NY session June 21, 2016

We are a day closer to the UK referendum vote and as a distraction, there was a Humphrey Hawkins testimony by FOMC chair Yellen. ECB's Draghi was also talking and it was Draghi who said "further stimulus is in the pipeline" that got the EURUSD moving lower. That selling saw the price move the price back below the 100 and 200 hour MA and head back down toward the 100 day MA at the 1.12348 level (the low reached 1.1240). In the process the gap from the Friday/Monday period was filled. The pair is ending the day at the lows.

The countdown clock is ticking in the UK and traders extended the GBPUSD to the highest level the first trading day of the year. In the process, the price moved away from the 200 day MA and topside trend line (at 1.4682 and 1.4703 respectively. The high price peaked at 1.4782 - Taking out the swing high from May at 1.4769. That momentum failed. Concerns about Brexit resurfaced, and for most of the US session, the price was back below the 200 day MA again (at 1.4682). That makes sense. The GBPUSD has moved up 770 pips since the low last week. The 200 day MA seems a place to stall and see where the vote goes.

The USDJPY continued what was started yesterday in early Asian Pacific session, but when the low from last week could not be taken out at 103.536, the rebound was on. The rally took the price briefly above the 105.00 level (high was 105.04) but the moved back lower into the close (104.76).

The AUDUSD and NZDUSD followed the same path - higher early and lower later (ending little changed on the day). The NZDUSD traded at the highest level since June 2015, but ended back toward the closing level. The AUDUSD did end a few pips lower on the day after being up about 60 pips at the peak. The high today took at the day high but that was reversed quickily enough.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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