EUR/USD Technical Analysis
The euro initially rallied during the trading session on Thursday to breach the 50-day EMA and then turned around and showed signs of hesitation. Ultimately, this is a market that has been in a downtrend for a couple of months now, and this is also a market that has further to go to the downside given enough time. The market reaching toward the 1.14 level is eventually where it goes, but this is going to be more of a grind to the downside than anything else. There were a couple of bounces, but on Thursday selling pressure began to reappear. The preference is to fade short-term rallies that show signs of exhaustion.
GBP/USD Technical Analysis
The British pound has gone back and forth during the trading session on Thursday as well, with the 1.32 level offering a potential resistance barrier as it was previous support. This is another situation where the market likely grinds lower given enough time, but as things stand, volatility does not appear to be a major problem. It is very quiet, but a very disorderly dismantling of the British pound. The 1.3 level looks targeted, followed by 1.2750. Ultimately, keep an eye on the 50-day EMA and the 200-day EMA because they are about to fire off the death cross, which will get some participants excited to start shorting from a longer-term perspective.
EUR/GBP Technical Analysis
The euro has rallied initially against the British pound, but overhead resistance remains significant. This market still finds ways to go higher, but short-term pullbacks offer opportunities to take advantage of value. This grind is typical of the pair, which is not known for being explosive most of the time. Short-term pullbacks have support all the way to the 0.8750 level. Based on previous consolidation and historical price action, this pair will likely try to reach the 0.89 level before it is all said and done.
For a look at all of today’s economic events, check out our economic calendar.
