The switch comes after an unconfirmed bull whipsaw lasting two days in the case of EUR/USD, and three in the case of EUR/GBP.
The head-fake nature of the bull signal was demonstrated Monday in the case of both cable and the dollar when the price closed below the pps moving averages. For confirmation, in the case of both currency pairs, the price would need to retreat up toward the moving averages and then convincingly move down again. Alternatively, a further decline below downside resistance would also serve as confirmation. In the case of EUR/USD, which is trading around $1.2240, resistance is at $1.2143. For EUR/GBP, it is at £0.8491. Also, EUR/USD is trading below the lower monthly Person's Pivot, which is at $1.2789. No bull signal, should another whipsaw ensue, can be called "confirmed" until the price moves up above the pivot. The lower pivot for EUR/GBP is at £0.8434. | All about the euro: How it got here, where it's going. |
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