2013.01.31 : Resistance is broken. What’s next?
EUR/USD
Yesterday all market moves were dictated by the bulls and the bears had almost no power and couldn’t do almost anything to stop the strong rally. The resistance at 1.3500 was clearly broken, followed by a re-test (seen on the 15 minute chart below) and a consequent move up. The US Federal Funds Rate remained unchanged and the FOMC Statement didn’t have the anticipated impact.
Technical Outlook
Fundamental Outlook
GBP/USD
The pair had a bullish day as well, just like the EUR/USD and the correlation between the two pairs seems to be almost restored. The resistance at 1.5760 was broken early in the morning and price continued on a constant upward path, moving close to 1.5825.
Technical Outlook
Fundamental Outlook