This morning we see a kind of reality check in EURUSD ahead of the weekend. The Euro was trading stronger amid better risk sentiment till yesterday from a low of 1.0900 on Monday to a high of 1.1138 on Thursday. But in the end, the decisive level could not be overcome for the time being:
”The currency pair is consolidating between 1.09 and 1.10 where the decisive levels can be found 100 pips lower (1.0806) respective higher (1.1121)” (Morning Call #61)
Bulls do not want so see a daily close below 1.1020 (low of yesterday) or even the 1.1000 treshold. On the other hand, should the Euro end the week above 1.1050, things are not looking too bad for the coming week.
EURCHF also had a good run this week and traded easily through all resistances amid soaring risk markets from a low of 1.0271 on Monday to a high of 1.0403 on Thursday. With that, the currency pair even rose a level higher than I had expected (see Morning Call #59). Anyway below the 50 ema (1.0357) there is again space to the downside. Above the 1.0400/05 level the short scenario is over again.
Good luck,
Sebbo