EUR/USD and GBP/USD Falling Sharply

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EUR/USD and GBP/USD Falling Sharply

The EUR/USD and GBP/USD fell sharply today during the US session. Better than expected new home sales data was able to nudge the two USD-crosses lower. When we look across the board, this does not seem to be a USD-strength story, but a weak euro and pound story. Let’s take a look at their charts.

The EUR/USD is continuing a downtrend, making new lows on the year as it broke below 1.28. However, the 2013-low stands at 1.2745, and with oversold conditions in the daily and weekly charts, we should probably expect some consolidation around 1.2750. GBP/USD was in a bullish correction from 1.6051 to 1.65. After the Scotland vote which resulted in the country staying in the UK, cable fell. If it can break below 1.63, it will likely pressure 1.6051. Below 1.6050, the 1.60 level is reinforced by 50% retracement and the 200-week SMA, and can provide at least some short-term support.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.