In an earlier post, I spoke to the selling seen in the EURGBP. It is tumbling lower today and as such, that tail is wagging the dog. Putting it another way, the EURGBP is influencing the price action in the EURUSD today.
At the start of the New York session (see video HERE), the price had rebounded off of a swing area between 1.0747 and 1.0759 in the European session and was back up testing a higher swing area between 1.0777 and 1.07865. Getting above 1.07865 would have opened the door for a rotation toward key resistance at 1.0810 where the 100-day moving average and the 38.2% retracement of the move down from the end of April high.
Given the EURGBP downward price action, that could not happen. The price has now moved down to test the low of the aforementioned swing area at 1.0747.
It’s decision time now for buyers and sellers.
- Move below 1.0747 and we could see further downside probing with the rising 100-hour moving average at 1.0723 a potential target.
- Stay above the move back above 1.07594, and the pressure is off with 1.07865 and 1.0810 as potential topside targets.