Trading higher today as it reverses all of yesterday’s losses. Looking ahead, the key for the pair will be to stay above its previous 1.5645 resistance. After initially failing at that level, it has cleared it and looks ready to test 1.5700 again. The big worry though is that the pair hit a new low for the week yesterday, showing Forex traders may not be willing to stay to committed to this pair and could be ready to sell quickly if today’s BoE Reports are negative.
Another pair worth watching today is the EURCHF. While it has really done very little in tha past 5 months, the current Euro strength this morning has reignited the pair somewhat as it has hit a 10 day high. While not much of a move as it has only traded to a high of 1.2018 from 1.2010, for the EURCHF it is a big move. And you know what they say, where there is smoke there is fire. Therefore, we could be seeing some sellers back off of their offers as they take a “wait and see” approach towards the Euro.