After falling through 1.29 six days ago the EUR has failed to generate a close back above that level after several attempts. The EUR has found short term Support at the 100 day moving average as price action on Friday bounced off that level. However, a close below the 50 day MA may have the EUR testing lows near 1.2550. Yet, the 50 day MA is upward sloping and poised to cross above the 100 MA. If that occurs and the 50 day MA acts as EUR Support, it may provide the necessary momentum to keep EUR bulls in the game and push the EUR back above Resistance at 1.30.
The AUD is on the verge of trading below outer trend line Support. It has fallen below the 200 day MA and touched the 100 MA twice intra day, before retreating higher. The 50 MA is lined up to cross above the 100 day MA which should provide the necessary support for AUD bulls. However, with price action testing the outer trend line Support and close to a break below the 100 and 50 day MA’s, a close below .8850 could send the AUD spiraling downwards. Yet, if the 50 day MA acts as AUD support and then crosses above the 100 MA, a bullish bias will remain in play.
The Pound has fallen below trend line Support after an impressive 3month run. Fortunate for the GBP the 200 day MA has been holding firm support as the GBP continues to consolidate around 1.5550. The 50 MA crossed above the 100 MA just as the GBP found strong Resistance at 1.60, several weeks back. However, a close below the 200 day MA will most like send the Pound lower to the 100 MA as it will most likely bypass Support at the 50 day MA on the way down. If the Pound can maintain Support at it’s 200 day MA, then it will more likely renter it’s trend line support and resistance bands. Additionally, if the 50 MA is able to cross above the 200 MA it should provide the necessary support for the GBP to take out Resistance at 1.60, where it came up short last time.
Written by bforex.com