Thursday, August 27, 2015

Both eurusd and gbpusd at key support

Both eur/usd and gbp/usd have been falling for three days now. Well, actually Euro has been falling for four days, as it rallies sharply on the 24th of August, but reversed dramatically the same day and started collapsing. 

We saw that 200 sma on 1, 2, 4 and even 8 hour charts could not stop cable from depreciating against the greenback. Yet current price action shows that a reversal by the end of the week (this Friday) is possible. A bullish candle on both 4 and 8 hour charts indicates that the support may have been reached and buying pressure is coming in. Some resistance seen at 1.5450 level. I will be waiting for more signs of buying to start opening a long position myself. 

On the other hand, Euro fell around 500 pips against US dollar since Monday and as I mentioned in my previous post, it hit key support and is slightly rising now. One can spot a bullish candle on 8 hour chart too. It may mean that Friday will see Euro and Pound rising and greenback falling. 

Key fundamental news tomorrow:

GBP Gross Domestic Product at: 08:30 GMT
EUR German Consumer Price Index at: 12:00 GMT

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