EURUSD moves toward the next swing area
An ECB sources comment of a slower pace of hikes then what was expressed by Lagarde at the December meeting, took the wind out of the sails of the EURUSD. The pair was trading near the highs for the day and testing the highs from Thursday, Friday and Monday at time. The price subsequently moved to a new session low.
The move has seen the price move below the 100 hour MA at 1.08134 after testing that moving average on two separate tests earlier in the day. It is a tilt, but the price will have to stay below that MA to keep the sellers happy.
There is more work to be done to increase the bearish bias with the low from Friday (at 1.07798), and highs from Wednesday and Thursday (1st half of day at least) near 1.0776 to give sellers some downside confidence.
The rising 200 hour MA is down at 1.07359 and the 38.2% of the move up from the January low (low for the month) is at 1.07242. Both are other targets (and minimum levels) that would need to be broken to give the sellers more credibility. Absent that, and the correction is a “plain vanilla” variety (at least from the hourly chart perspective)..
The EURGBP also saw more of a reversal on the “sources news headline” as well.
For it, the pair was off it’s earlier session highs on the back of more GBPUSD bullishness, but was looking to retest its 100 hour MA (blue line at 0.88641).
The sources news, sent the pair back below its 200 hour MA at 0.8844 and then the 50% of the move up from the January 9 low at 0.8832 That level was a low earlier in the day and low price going back to last week (at 0.88321).
Falling below each, increased the selling momentum, and has the pair looking toward a swing area between 0.8778 and 0.8782. That is ahead of the low from last Monday down at 0.8768 (low for the month). Break below each gets the pair trading at the lowest level in nearly a month.