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The EURGBP is down testing the 200 day MA 0.8855 level.  The pair has continued its assault to the downside today after yesterdays sharp move lower.  Of course action is winding down for the year so I do expect action to quiet down, but come Monday, the moving average will come back into focus as traders all return and look for the new opportunities in the New Year.

As per the earlier post (click here), the USDJPY has moved and is approaching the 50% retracement level of the move down from the April high of 101.43 and the November low of 84.80.  That level comes in at the 93.12 level.  Look for profit taking sellers at the level. 

Support now comes in at 92.76

Reuters headlines…Chicago PMI for Dec being revised

PMI revised to 58.7 from 60.
New Orders revised to 64.4 from 63.5
Employment index revised to 47.6 from 51.2

Yesterday this report came out so there must have been an error in the initial calculation.   It takes some of the steam out of the initial report. However, it still is up from expectations and last months value.

The GBPUSD fell through the support at the 1.6158 level and the 100 bar MA on the 5 minute chart at the 1.6162 and selling intensified (see prior post).  The market sold off quickly but found support against the 200 bar moving average.  For those who listen and read our commentary, a break of the 100 bar MA chnages the bias from bullish to bearish and next targets the 200 bar MA.  If the 200 bar MA is broken, it confirms the directional move and should lead to lower levels.

This move gives a bearish bias, but keeps the upside still in play. Look for sellers against the 100 bar MA at the 1.6164 level.  A  break above muddies the water.

The EURUSD has moved through the 100 and 200 hour MA in the last hour of trading. There was a report circulating that the IMF is in discussion with Greece in regard to its debt situation. This is leading to the sharp selling in the pair as news and illiquid markets make for nervous markets for the Eurozone.

There should now be resistance against the 200 hour MA at 1.4341. Look for sellers against this level. The next support level comes in at 1.4300/06 level.  A break next targets the low from yesterday at the 1.4273 level.

The downside target of 1.6158 is approaching (see prior post).  This level corresponds with the 100 bar MA on the 5 minute chart. It also is support off the daily chart going back to the August/September time period.  Look for some profit taking buying against the level.  A break would target 1.6114 level where the 200 bar MA on the same 5 minute chart is found.

The market in general is trading in a technical fashion today with key levels tending to hold resistance and support.  The warning, however, is we are beginning to approach the end of the year where some last minute position squaring is likely to take place.   Be aware that this, along with less liquidity, can lead to some unusual moves.  So be aware. Be prepared.

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