EUR/USD Technical Analysis
The euro has gone back and forth during the trading session here on Wednesday as we are just hanging around below the 50-day EMA. With that being said, it’s likely that the market could drop from here, perhaps reaching the 1.15 level. If we break down below there, the 1.14 level gets targeted, where the 200-day EMA is, and that, of course, is a major area that people will be watching very closely.
With that being said, I don’t have any interest in buying this market once we break above the 1.17 level because I think at that time, the euro will have proven itself. But as this continuation pattern rolls out, I certainly don’t have any interest in buying it anytime soon. I think the US dollar is going to continue to strengthen in general.
GBP/USD Technical Analysis
The British pound has fallen a bit during the early hours here on Wednesday as the 1.32 level continues to be an area of major resistance, especially as the 200-day EMA is sitting just above there. The 1.30 level underneath is significant support with a large round psychologically significant figure that has proven itself at that level. It makes a lot of sense. It is a short-term floor. If we break it down below there, then the market really starts to unravel.
EUR/GBP Technical Analysis
The euro continues to rally against the British pound, showing that the euro, of course, is stronger than the British pound, but we’ve known that for a while. The 0.8750 level is an area that has previously been significant resistance, and it does make a certain amount of sense that it will continue to do so. And with that being the case, I look at this little area as one that I think is your short-term floor, especially now that we have the 50-day EMA hanging around to show a bit of a short-term floor. The 0.89 level is what I consider to be the target due to the measured move of the consolidation previously. I like buying dips. I have no interest in shorting.
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