Tests lows from yesterday
The GBPUSD held support against the 100 and 200 hour MA and moved higher (SEE PRIOR POST). That is not stopping the EURUSD which remains near low levels for the day.
The guiding light for this dynamic is the EURGBP which is selling to session lows AND testing the lows from yesterday in the process.
If you recall from yesterday, the EURGBP pair moved to new lows going back to August 20 but found support buyers against trend line support (see chart above). Currently,that low at the 0.71089 level is being tested. A move below, will next have traders targeting the lower trend line at the 0.7089 level currently (and moving lower).
Like we saw yesterday, the EURGBP can have an impact on the "pieces", or do the "pieces" of the cross currency pair, influence it. Today, it seems the catalyst for the EURGBP fall was the bounce of the GBPUSD off the 100 and 200 hour MAs (see prior post). That bounce was the signal for EURGBP sellers to explore the lows. Now with the low from yesterday being tested in the EURGBP, will it hold and does that slow the EURUSD fall? We will see. The EURUSD is stalling a bit as I type...