50% of the days range also near level
The EURUSD has reversed higher and moves back toward unchanged on the day and the 50% retracement of the move down today. The pair closed at 1.09986. The 50% is at 1.0997. The 100 bar MA on the 5-minute chart is at 1.09994. Let's call the 1.1000 level a resistance target for the pair to get to and through.
The EURGBP has been pushing the EURUSD and the GBPUSD around today. That pair has been on a downward path today (fell below the 200 hour MA) and got close to the post-crash low at the 0.8900 level. We are seeing a rebound off the low and that has been a help in pushing the EURUSD back higher (the GBPUSD is also moving lower). When the cross gets involved it can get more tricky. The higher EURGBP can manifest itself in a higher EURUSD and lower GBPUSD like we just saw, or a lower EURUSD and a faster falling GBPUSD as well (there are other combinations as well). So keep an eye on it, but also understand that the sellers may also lean simply against the 1.1000 level in the EURUSD and that may be the low risk trade.
So try to keep things as simple as possible. We (as retail traders mostly) have to pick our risk defining spots to trade that should hold and "hope" that the other traders lean against those levels too. If the EURGBP bullies higher and our level is taken out, get out. That is trading. If the level does hold, it may actual bully the EURGBP as well.
