The USD is higher to kickstart the NA session. What are the technicals telling traders?

The USD is higher vs the major currencies as the market digests the war in Iran. A snapshot shows:

• Swiss Franc (CHF): +1.08%

• Euro (EUR): +0.77%

• New Zealand Dollar (NZD): +0.77%

• Japanese Yen (JPY): +0.72%

• British Pound (GBP): +0.58%

• Australian Dollar (AUD): +0.55%

• Canadian Dollar (CAD): +0.12%

In the video above, I take a technical look at the 3 major currency pairs – the EURUSD, USDJPY and GBPUSD – and outline the key technical levels in play, and outline the bias, the risks and the targets for each.

Although the uncertainty of war can change with each successive headline and no one knows, the price action and tool applied to it, tell traders the bias, the risks and the targets.

In the American session, we get the US ISM Manufacturing PMI. The index is expected to tick lower to 51.5 vs 52.6 prior. The S&P Global US PMIs were weaker than expected and lower than previous month. The agency noted that “a combination of weakened demand, high prices, and adverse weather colluded to dampened business activity in February, resulting in the slowest expansion of output for ten months”. Again, the market focus is solely on the conflict in the Middle East now, so the data might not matter much.