Helping the EURUSD pressure
The EURUSD has moved lower and looks to test key support.
Meanwhile, helping the downside for that pair is the EURGBP which has also moved lower and is testing the key 200 hour MA (green line in the chart below at 0.73566). The price last moved below this MA on Friday, but that break failed.
Today, the price rebounded and reached new highs going back to October 14. That extension also quickly failed, and the sellers have since been in control.
The move lower, has seen the price break back below the 100 hour MA (blue line in the chart above) at 0.7371. This is now a risk level for the sellers. Stay below the selller's remain in control.
Having said that, those sellers still have some work to do if this move lower is to continue. Going back to the end of November, the price has moved below the 200 hour MA on the EURGBP on 4 separate occasions. Each has failed relatively quickly. This is the 5th key test of the MA. A move below and staying below will be eyed by the shorts as further confirmation the peak may be in place.
On a break, the next targets would be 0.7344 and then 0.73314 (see chart above).
