EUR/USD Buoyed By Buying In The EUR/GBP

The EURUSD initally fell in today’s early trading, falling below key support at the the 100 hour MA and the 50% retracement of the move up from Sept 21. The subsequent fall, however, was buffeted by the 200 hour MA which stopped the decline and started a rebound.

The pair has now moved back above the old 2009 high of 1.4766. There should be some additional upside resistance at the 1.4791 level from old highs and lows and closes. Above 1.4800 we know the 1.4825 and 1.4866 level, with early sellers in the mid 40’s lining up ahead of the 1.4866 key resistance level.

On the downside, in addition to support at the 1.4766 level, the 100 hour MA (blue line in chart above) comes in this morning at the 1.4736 level currently.  Below that the market is likely to target the 200 hour once again at the 1.4700 level (green line in chart above).

Looking at the 5 minute chart, the bias is to the upside as the price has rebounded above the 100 bar MA.  The current level comes in at the 1.4750 level.  Eyeing this MA and using it as a support level to buy against, is also likely in the early trade today.

The EURUSD has been buoyed by buying in the EURGBP.  This in reaction to the BOE King’s comment on the GBPs value (i.e. weaker GBP would benefit economic rebalancing). The pair has reached the highest level since early April 2009.   The pair’s price has also moved above the 61.8% retracement level of the move down from the March 2009 high at the 0.9077 level

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