The EURUSD tested the 100 hour moving average last night. The high for the day has been 1.3082. The 100 hour MA was 1.3077 (at the time). Sellers entered the market the level and pushed the price down further. A move above the 100 hour moving average currently at the 1.3067 is neede to push the price higher. Bears remain in charge.
The price is now trading more toward the low as the price consolidates. The low overnight was 1.2944. Another low came in at 1.2968. The price bottomed at 1.2824 yesterday.
The USD/CAD is ending the week after trading between the 100 and 200 hour moving average for most of the day. The fundamental economic news may have been negative for the pair this morning (with GDP down 0.7% for the month), but the pair had already done its rallying for the day prior to the release (CAD down, dollar up). When the buyers did not push the pair higher, the low was the favored direction. Selling pushed the pair to the 100 hour moving average where the buyers reemerged.
So the week will end with the pair in between support and resistance awaiting the action next week. The break direction (above the 200 hour moving average or below the 100 hour MA) will dictate the probable direction for the pair.
The Moody’s rating agency downgraded the long-term debt of Barclays PLC. It also lowered the financial strength of the bank from a B to a C. The downgrades are said to reflect Moody’s expectation of potentially significant further losses at Barclays as a result of writedowns on credit market exposure as well as increase in impairments in the UK, whichcould weaken profitability and capital ratios. As a result of this first major news release of the week the Pound has sold off across the board with GBP/JPY retesting the 129 handle.
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