The eurodollar has retreated from its yearly high of 1.3831, but the pair has gained further momentum on the continued weakness of the dollar and have traded back above 1.35, this coming after a sharp pullback to sub-1.33 on the decision of the European Central Bank to cut the benchmark rate.
There is a large upward channel which started 1.2748 and completed at the high on the daily chart. From the top of the channel, price action plummeted to 1.3295 and then started a whole new upward channel.
The eurodollar is currently trading at 1.3561 and at price action resistance.
A second look at the daily chart with Fibonacci retracement confirms key points of price action. For instance, the price action resistance the eurodollar is currently facing is confirmed by the 23.6 percent level.
There is support to the upside if the resistance level is broken. There is a bullish +/-DMI crossover looking to take place. The trend strength is strong at 25, but it is sloping down. This could indicate a pullback prior to retesting resistance. Look for support at the 20 and 50 EMA. Price action support at 1.3470.
The Sterling has traded high on the dollar but less successful than the euro. The GBPUSD has been in a spiking range between 1.59 and 1.6260 over the last couple months. Friday, the GBPUSD broke through 1.60 again and has kept between 1.60 and 1.6110. Resistance is located at 1.6150 with a secondary resistance level of 1.6260.
Support is at 1.605 which coincides with the 20 EMA.