Watches as the GBPUSD leads the dance today
The EURUSD is playing second fiddle to the GBPUSD and EURGBP which are showing GBP weakness (more on the EURGBP later).
The EURUSD is higher on the day - having moved to test the 100 hour MA (blue line in the chart above) once and now twice as I type. German IFO data was stronger. Earlier, the price for the pair broke above the 100 hour MA above the 1.0665 level -and printed a high price for the day at 1.0669 (at the time of the GErman IFO). That spike was quickly reversed and the pair has been consolidating since that time as the market awaits the US GDP report (moving higher in the last few minutes though). ON a weaker report (2.1% is expected), a move above the 100 hour MA will look toward the 200 hour MA (green line) at the 1.0688 level currently. The 1.0700 area (there is a trend line at 1.0700 level currently) will be a key area to get and stay above. The last corrective move higher on Friday reached 1.0707.
On a stronger a move below 1.0630 and then the low for the day at the 1.0619 are the first steps. The 1.0600 level held the line yesterday but gave way and traded 1.0591. A lower trend line has had a few little breaks near the low levels.
Much will depend on the data today. There is room to roam as the EURUSD range is only about 50 pips. So be on the lookout for an extension outside the range.
