This mornings month end flow has caught some traders on the wrong side of some moves in EURUSD and GBPUSD, with EURUSD trading as high as 1.3812 with all eyes now on the 1.3832 October 2013 highs and then the 1.3893 December 2013 highs.
GBPUSD also tried to break higher but ran in to large selling at 1.6768 retracing back to as low 1.6682 with support at 1.6675 just below.
DXY 4 hour chart
We have seen the dollar index break through the monthly lows with the next support coming in at 79.65.
So were to next?
Todays US GDP is likely to give some more volatility in the markets, should the data disapoint expect EURUSD and GBPUSD make an attempt to test these key resistance levels. A good number and I would not be surprised to see much of the moves on the upside today retrace. The michigan consumer confidence then follows at 14.55pm (GMT) with pending home sales not long after at 3pm (GMT).
