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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