Both the EURUSD and GBPUSD attempted upside moves earlier in the session but ultimately failed to sustain momentum, rotating back to the downside.
For the EURUSD, the pair had been trading above and below its 100-day moving average coming into the North American session before extending higher toward a swing resistance area between 1.16449 and 1.16596. Within that band sat the 50% retracement at 1.16544, a key level for traders. Sellers successfully defended the retracement, keeping the price capped, and the rejection has since led to a rotation lower. The pair is now pressing to new session lows, with the next key target at the 61.8% retracement of the move at 1.15922. That level is reinforced by a swing area between 1.15816 and 1.15959, giving sellers a defined zone to aim for.
The GBPUSD also saw a push higher but stalled well ahead of its converged 100- and 200-hour moving averages near 1.3442. That failure signaled to sellers that the upside move had run out of steam, and momentum quickly shifted back to the downside. The pair too is now trading at new session lows, with the next downside target at 1.3369. This level lines up with prior swing highs from September 26 and a downward sloping trendline connecting recent lows, making it an important area for buyers to defend. A move below 1.3369 would open the door toward a swing area between 1.3323 and 1.3341, where additional support could be tested.
This article was written by Greg Michalowski at investinglive.com.