Wednesday, October 12, 2011
EUR/USD & GBP/USD Rally's Resistance Ahead
Market looks very short the contis and that is reflected in those over-extended moves in the EUR/USD and GBP/USD. It might be short covering and stop hunting.
Just as a reference we have solid Resistance areas ahead and majors are very close to these inflection points.
> Resistance layer on EUR/USD is between 1.3836 (July Low) and 1.3855 (50% of 1.4560-1.3149).
> Resistance area on GBP/USD Res at 1.5778 (July Low) and 1.5837 (Upper Bollinger Band).
Daily ranges are over extended based on historical averages so I'm fading these moves with low leverage.