EURUSD movement today hinges on the US CPI release of course. The pair is in a 6 month bull trend but having failed to beat the 100 week, 500 day moving averages & the January high it is looking increasingly like we are establishing a 500 pip sideways channel as the moving averages flat line on the daily chart.
Today we test 2 month trend line & 100 week plus 500 day moving average resistance at 1.0940/60. Shorts need stops above 1.0980. A break higher should be a buy signal initially targeting the February high at 1.1033.
Shorts at 1.0940/60 can target 1.0900 then 1.0870.
GBPUSD beat the December & January peaks of 1.2425/45 on Tuesday which I had to assume was an important buy signal.
I was wrong!! Having failed, it looks like we remain in a 4 month sideways pattern. The pair should have support again at 1.2365/45. Longs need stops below 1.2335. A break lower can target 1.2300 & 1.2250.
Trend line resistance at 1.2510/30. Shorts need stops above 1.2545.
