In this video, I take a quick technical look at 3 major cross currency pairs:
- EURGBP
- EURJPY, and
- GBPJPY
Those on pairs did have up-and-down price action today:
- EURGBP: The EURGBP initially moved lower in the Asian Pacific session only to find support BUYERS against its 100-hour moving average. The subsequent move to the upside has seen the price trend up through the 50% midpoint of the August trading range of 0.8580, the swing high from yesterday’s trade at 0.8598, and up to a swing area between 0.8609 and 0.8611. The price has stalled against that area but still remains above the 0.8600 level – keeping buyers in firm control. Staying above that level and getting above 0.8611 would increase the bullish bias going forward.
- EURJPY: The EURJPY initially moved lower into the early European session and then spiked higher before moving back down again. The low price – reached at the end of the Asian Pacific session – stalled against its 200-hour moving average (currently at 158.216). A move below that level is needed to increase the bearish bias, and it would have traders looking toward the 100-hour moving average at 158.00. So far, however, the 200-hour moving average is holding support. Getting above the Asian session high at 158.65 would have traders targeting the high price of the day near 159 07 and then a swing area between 159.19 and 159.32.
- GBPJPY: The GBPJPY bias had shot on a move above its 200-hour moving average of 184.53, but momentum cannot be sustained in the price rotated to the downside. It has now moved below the lower 100-hour moving average of 184.279 and has spent the last 4/5 hours below that level. The problem is momentum is not necessarily increasing. Yes, sellers are more in control below the 100-hour moving average, but should the price move back above the moving average, the price would move back into a more neutral bias between the 100-hour moving average below, and the 200-hour moving average above. Conversely, if the price is able to stay below the 100 hour moving average at 184.279, the swing area between 183.17 and 183.327 would be the next key target area.
This article was written by Greg Michalowski at www.forexlive.com. Source