Dollar fall in the US session reverses course quickly | Forexlive

The US dollar moved lower in early US trading, but has hit a wall and reversed back to the downside erasing most of the gains.

US yields have moved to the upside helping to support the greenback.

• The 2 year yield is up at 4.583% up 6.0 basis points.
• The 5 year yield is at 3.914% up 5.8 basis points and
• The 10 year yield is up at 3.750% up 5.1 basis points.

US stocks have reversed lower with the NASDAQ index now down -57 points or -0.43% at 13219.30. The Dow Industrial Average is still higher by 47 points or 0.14%, while the S&P is down -5.37 points or -0.12%.

The Bank of Canada raised rates by 25 basis points, and that has the markets nervous about a Fed hike next week when they meet on Wednesday.

Looking at some of the major currency pairs:

• EURUSD broke above its 100 and 200-hour moving averages near the 1.0715 area to a high of 1.07391. That was assured of a swing area target between 1.0747 and 1.07594. The price has since rotated back down and then back below the moving averages at 1.0709 currently.
• GBPUSD moved above its 100 hour moving average in the late London morning session at 1.24549, and rose to and through the 50% midpoint of the May trading range at 1.24933. The high price reached just below the natural resistance at 1.2500 level (at 1.24992). The price is currently trading at 1.2469. He remains above the rising 100 hour moving at a 1.24549. It would take to move back below that level to increase the bearish bias in the short term at least.

What about the USDCAD?

The USDCAD moved down to test the May low at 1.33137. The low price reached 1.3319 before rotating back to the upside. The high extended to 1.33719. That is just below the broken trend line on the hourly chart below at 1.33742.