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Forex pairs in this Article » EUR/USD (London) - EUR/USD commenced 1.3230/40 on the London open and has since found lows at 1.3210.

EUR/USD has been drifting lower after an initial bounce from a spike lower in the London opening hour. The pair remains well offered since the FOMC gave indications that a rate hike in the US may come sooner. A raft of positive US data followed and has overshadowed that of the EZ in the main. Today is quiet ahead of the weekend without any data for the pair and activity is likely to come in the form of profit taking and closing of positions in NY.

EUR/USD below 200 d ma

Karen Jones at Commerzbank noted that EUR/USD has backed away from 1.3440/52, the 200 week ma and the 2011-2013 resistance line. She said this is key resistance and we are at last seeing signs of failure. Initial support at 1.3177 has been eroded (but not on a closing basis) but to really get attention diverted to support the 55 and 200 day moving average at 1.3080/74.She explains that currently the Elliott wave count is suggesting we will see a pullback to 1.3125/1.3055. Below 1.3073 will trigger losses to 1.2841/1.2796 support line, which guards the 1.2740 April low.
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