EURUSD bouncing. USDJPY comes off as wellThe ISM — although still high — was lower than expected. Construction spending was mixed with the prior month revised lower, but the current month higher than expectations.
The dollar has come off a bit as the market now prepares for the FOMC statement later today. No change expected but the market will be eyeing to see if the Fed is more hawkish in statement (i.e. more concerned about potential inflation with markets zooming, stimulus in the market still from relatively lower rates and fiscal measures potentially in the near future).
Nevertheless, the dollar has dipped from high level post the data.
EURUSDThe EURUSD has move back higher and in the process is back testing its falling 100 hour MA at 1..1635. Earlier in the day, the price did move above that MA line for the first time since October 26th, but moved back below the line fairly quickly (about 35 minutes above). The 100 and 200 bar MA on the 5-minute chart is also in the area. They come in at 1.1633-358. The high just peaked at 1.16352.
The USDJPY backed off from it’s run higher and has just moved below the 100 bar MA and the 50% of the last leg higher at 114.00 area. The 200 bar MA comes in t 113.897. A move below that level will be more negative for the pair.
The thing to remember is of course the FOMC later today. That does tend to slow tradig down. The dollar had been rallying on expectations of the Fed signaling a December hike. So be aware..