EURUSD and GBPUSD moves to new highs on the day. What next?

The USD moved to new lows vs the EUR and GBP (new highs for the EURUSD and GBPUSD) in US morning trading.

THe EURUSD has moved to a new high and in the process has tested the 50% of the move down from the March high to the March low. However, sellers have leaned against that level on the first test at 1.08522. The high price just reached 1.0853 and backed off a bit.

The GBPUSD moved to a high of 1.2651. That took the price to – and through the 100-bar MA on the 4-hour chart at 1.26497. The problem is, the 100 day MA at 1.2662 and the 200-bar MA on the 4-hour chart at 1.2683 remain as targets to get to and through. The current price is at 1.2647.

Can the buyers keep the momentum going, or will the sellers at resistance targets stall the rally.

PS. Yields remain up but off highs for the day.

• 2 year 4.776%, up 4.4 basis points
• 5 year 4.426%, up 5.9 basis points
• 10 year 4.421%, up 4.4 basis points
• 30 year 4.554%, up 2.3 basis points.

This article was written by Greg Michalowski at www.forexlive.com.