As North American trading gets underway, the trading ranges for the EURUSD and GBPUSD are very narrow. There is room to roam and the topside is being pushed.
Looking at the EURUSD, traders are pushing the price above the 61.8% retracement of the move down from the July high to the October low. That level comes in at 1.09589. Getting and staying above that level should open up the door toward the 1.1000 level, the 1.1010 and then a swing area between 1.1041 and 1.1050.
The GBPUSD moved above its 50% midpoint on Friday at 1.25886 and yesterday stayed above that level at the day’s session lows. Today, the low price of 1.2605 was more comfortably above that midpoint level. So buyers are making a play. The problem is the momentum is not all that great. The trading ranges around 40 pips and that is a lot. Nevertheless, if it breaks above yesterday’s high near 1.2644, I would expect the buyers to take more control and push the price higher.
For the USDJPY, the selling from yesterday continued in the Asian session today before bouncing higher in the European session. The good news is that the balance did find resistance the sellers near a swing level around 148.80. Staying below that level would keep the sellers in play.
This article was written by Greg Michalowski at www.forexlive.com. Source