It’s all died a bit of a death out there at the moment.
EUR/USD bounced again from the 55 dma currently at 1.3626 but we’ve been stuck in a 30 pip range since then. If we do break lower then that may tip EUR/GBP lower and towards a year old support line at 0.8231.
EUR/GBP daily chart 03 01 2014
Of course as soon as I start writing this EUR/GBP pops 30 pips as cable sheds 40, but hey ho, the level is still there to be watched. Ahead of it the November low at 0.8251 will be the next line of support.
Above 0.8390 has been a previous point of resistance and it’s joined by the 55 dma at 0.8396 and there’s plenty of moving average resistance in the 0.84’s.
- 100 dma 0.8425,
- 200 wma 0.8451
- 55 wma 0.8477
- 200 dma 0.8484
So there’s plenty to chew through to the upside.
Despite my bearishness for this pair I would be interested in taking a long on the technical support line should we get there.
