EURUSD:
The EUR closed on Friday exactly at near term Resistance, at 1.2894. Obviously a close higher would provide added support to this EUR rally. The EUR has also closed up four consecutive sessions, something it failed to do in any material way since the EUR touched a low near 1.19. Although the EUR is currently trading above it’s 50 day moving average it is not doing so in a decisive manner. Thus a close above near term Resistance coupled with a close decisively higher than the 50 MA should have the EUR targeting the 200 day moving average and mid term Resistance at 1.33.
GBPUSD:
The GBP is truly at a critical juncture here. It broke below trend line support in mid August and Friday saw the GBP close right at near term Resistance, at 1.5465. Interestingly enough the 50 day moving average has just crossed above the 200 day moving average in a bid to solidify this GBP rally that began at 1.43. If the GBP can close higher it will represent a breach of trend line resistance (red line) as well as near term Resistance. Additionally, if the GBP can push a solid a close back above the 50 MA it will validate the 50 MA’s cross above the 200 MA and will likely push the GBP to retest recent highs at 1.5950.
EURGBP:
At present, based on the analysis of this cross it would appear that the EUR is trading considerably more bullish as it has gained on the GBP for four consecutive session. More importantly, it has once again been able to take out the 50 day moving average and now target the 100 day moving average, a level not seen since March. More major resistance sits at .8375. If price closes above that level at the same time it breaches the 100 day MA there will likely be major price action to follow.
Written by bforex.com
