Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.2940)
The Euro has been a freefall since the ECB announced they were slashing rates. We are now well below the key technical level of 1.30. We have not been this low in the EUR/USD Forex pair in well over a year.
We see near term support lining up at 1.2930. Any break below this level, with a close, will open the flood gates for 1.2860. An alternative view, will mean a reversal in our model. We need to move above 1.30 then 1.3025 to retarget 1.3075 then 1.31. Bottom line, we need a close back above 1.3150 to indicate a bottom in place.
GBP/USD (1.62073)
The Sterling is sinking once again as we are at its lowest point versus the dollar since November 2013. A close below 1.6220 sees a test of a key technical level near 1.6215.
On the other side of this coin, we need a break back above 1.6295/1.63 congestion area to test 1.6380 and higher.
It makes sense to stand aside right now. We are near a near term support level, this means short trades are not worth the risk or reward. There is no sign of a bullish reversal right now. So taking long positions is way too soon to contemplate.
