Phew....Markets are brutal
The markets are certainly being a bit pesky at the moment.
My read of the EURUSD was good support below at 1.1334, but traded mostly below the 1.131-86 area for most of the day. Surely, the market would lean against that level on a correction higher. The EURGBP had resistance at the 0.8086-0.8100 area too. SO that should help. Good idea.
Meanwhile over in the GBPUSD, the 1.4032-58 was breached to the downside ( see earlier post ). The price corrected into the area but was holding resistance.
If EURGBP falls or stalls, that brings EURUSD lower. GBPUSD may stall a bit or even move lower at a slower pace with the EURUSD, but surely it will keep below the 1.4058 level. Right??
The EURGBP squeezes up to 0.8104, taking the EURUSD up to the resistance area, then comes back down to 0.8081.
Does the EURUSD come down? Nope. both it and the GBPUSD race higher instead. The EURUSD breaks above the 1.1381-86 area and up to 1.1400. The GBPUSD breaks 1.4058, and after a test of that line, races up to 1.4096.
Of course both are now back down off 1.1400 an 1.4100 levels. The catalyst? Blame the USDJPY. That ride saw a break below 110.00 to a new 18 month low of 109.81. A move back above the 110.00 level, and within a minute, the price was up at 110.40, then back down to 110.03 soon thereafter...