Forex technical analysis. Factory orders giving the dollar sellers ammunition

Although factory orders came in as expected and the Ex transportation was higher, the dollar is under pressure.

The dollar has gotten a little push after the -3.3% decline in the factory orders. Now the decline was expected and if you strip out the transportation was up 0.6%. So it was not all that bad. Nevertheless, on a quiet day, we are seeing continuation of some dollar weakness.

GBPUSD.

The GBPUSD has broken above the 1.2981-88 area and looks toward the 1.3000 test. The 1.3020 is the 50% of the move down from the August 3 high.

EURUSD.

The EURUSD is moving to new session highs and in the process is extending the narrow trading range for the day. The EURUSD range is only 47 pips. The average has been 89 pips. The 1.1917 is the 38.2% of the move down from the August 29th high. The highs yesterday stalled at 1.19215. The pair has moved above the 100 hour MA at 1.1892 and the 200 hour MA at 1.19019. Those levels are support now for longs.

USDJPY

The USDJPY continues to test the lower trend line and find buyers. The MA is going lower so it is a harder target to get below, but the rallies are limited in the NY session.