Since today’s open the Euro has traded continually higher despite comments from ECB President Draghi warning that any delays in the European bailout fund could increase costs and raise further doubts. He told the Financial Times earlier today that “any country leaving the euro would be worse off and would still have to go through the same reforms”.
In recent trading the pair moved higher through the 1.3000 handle where we saw support at the end of last week; the 38.2% on the move recent move also comes in around here. Currently we are testing the 50.0% to the topside and finding some resistance. If we can continue higher the first stop is 1.3019 where we find the 61.8% and 200 bar moving average; looking back to 1.3000 if resistance holds.
1.5555 next stop for GBP/USD?
Sterling, like the Euro, has continually gained strength today with the GBP/USD currently testing the 100 hour moving average after finding support at 1.54636 earlier tonight. With risk appetite starting to appear, and the USD softer across the board, the next hourly target for the pair is 1.55556, with the 50.0% showing to the downside.
EURUSD moves away from 100 hour MA
The EURUSD has moved below the 1.3024 level which is the 100 hour MA. The move below this level opens the door for a test of the 1.3002. This level was the low from earlier today and also a low level from Friday. Below, the 1.2988 level is trendline support that has 3 separate tests over the last 4 trading days. I would expect to see intraday dip buyers against each levels as quiet holiday trading is most likely.
USD/SGD in a daily wedge.
