While the GBPUSD continues to remain the weaker of the two, the EURUSD has begun a second attempt at the 1.30 handle and is showing some mild signs of basing.  Momentum and CCI on the daily charts imply short term gains for the pair but they are working awefully hard to garnish even modest gains.

Taking a look at the daily chart below on the EU pair, we have just executed our first upward cross of the Tenkan (white line) and Kijun (red line) in over 2 months.  The crossover is not particularly exciting and is rather flat so there is currently not much upward acceleration of price action to warrant being overly bullish, or even moderately.  The pair two weeks ago attempted to attack the 1.30 level and remain above but it was not to be and the pair ventured towards the 1.25 figure.  However coming just shy of the big figure, we have seen some bullishness in today’s candle and the pair is set to close above both the Tenkan and Kijun.  The problem with all of this is the Kumo or cloud which is quite thick and elongated with the lower Senkou Span A (White line - bottom portion of cloud here) continuing to fall suggusting any upside efforts are going to run into tough resistance and the pair is really going to have to work to close the year above 1.30.

value=500That combined with the overworking Momentum and CCI suggest the pair will likely have a similar effort to the atttempt at 1.30 and sell off again.  With volumes continuing to thin as the year comes to a close, there may not be enough good news from Santa or the global economies to give the bulls the economic advantage they need to prop up this pair.  Technical players are no doubt eyeing the likely close today above the 20EMA  which is attempting to turn up but there needs to be more gusto and follow up for this to really bring in the tech models.