Taking A Closing Look
Looking at weekly moving averages can be a useful tool for traders though the relevance of the associated levels arguably only really materialises when compared to where the relevant currency pairs close in New York on a Friday. Nevertheless, traders might find it useful to know that analysts at ThomsonReuters IFR (TRIFR) currently have their eye on two weekly moving averages that they feel may help shape the EURUSD market. In the first instance, TRIFR have the 30-week moving average on their radar screen which by their reckoning presently comes in at 1.1517.
Though there are no guarantees in forex, TRIFR’s analysts feel that a weekly close below that level could open up the potential for almost another 100 pips fall in the pair. At the same time TRIFR analysts have zeroed in on the 200-week moving average which they currently calculate to be at 1.1616. By the same logic, TRIFR suspects a weekly close above that level “will signal that the bearish push [in EURUSD] is faltering.” Traders might wish to keep an eye on this Friday’s close on EURUSD in the Big Apple.
Written by Neal Kimberley, External Currency Analyst.