EURUSD trades at key resistance
As London traders head home for the weekend, the dollar is selling off a bit.
As outlined earlier, the buyers have to prove they can take back control by taking the price above the 1.1076-79 area. Well, the pair is trading above that level (at 1.1080 currently).
That is a bit of a disappointment for the shorts. You would expect sellers against the level.
You can blame the London/European close as traders take risk off, but the price action does not lie. So cautious. Traders who are short would like to see this move fail and for the price to trade back below the 1.1075-78 key levels, but until then, the buyers are showing they can take back some control. Key moment.
The GBPUSD is also testing a key resistance area defined by swing lows and highs (see chart below). That area comes in at 1.30467-74. The high just extended to the topside line. Like the EURUSD, a move back below the 1.30467 will put the sellers back in control, but being in the resistance area, does muddy the water a bit.
