EURUSD and GBPUSD both test the 100/200 hour MAs. Key technical level for both pairs.

The EURUSD is trading at new session highs and in the process has extended to the falling 100 and 200 hour moving averages. Both those moving averages come in near 1.03504. The level becomes a risk-defining level for traders.

What that means is that sellers can lean against the level with a close stop on a break above. The hope is that the price moves lower after testing the resistance level with the potential for profit greater than the risk from a loss.

The area is a key barometer for both the buyers and sellers.

Coincidentally, the GBPUSD is also trading to new session highs and in the process has extended to the near converged and falling 100 and 200-hour moving averages. Both those moving averages come in at 1.24205. Like the EURUSD, the converged moving averages become a risk-defining level for traders. They can lean against the level with a close stop on a break above, with the hope that buyers turned to sellers and push the price back to the downside.

Key technical targets for both the EURUSD and GBPUSD. Traders will be using the areas as key barometer for future price action.

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