EURGBP Tests Major Support

21 October, 2016

This morning we saw the release of German PPI YoY and MoM figures for September. The former fell to -1.4%, compared to expectations of -1.2%. The latter was -0.2%, in line with expectations. Also we saw the release of UK Retail Sales and Core Retail Sales (YoY and MoM) for September, all lower than expectations.

The underperforming UK retail sales figures helped EURGBP firm.

EURGBP pulled back since 12th October after testing the long term major resistance zone between 0.9060 – 0.9150, as the selling pressure is very heavy at this level. The price held above the support level at 0.9000 between 11th to 17th, yet the level was broken on 18th. The level at 0.9000 has turned into the near term major resistance level.

The current price holds above the downside short term uptrend line support, where another support line at 0.8900 converges, which is providing a stronger support. The price is likely to rebound here.

In addition, the daily Stochastic Oscillator is below 20, suggesting a rebound.

The current trading pattern is likely to oscillate in the range between 0.8900 and 0.9060.

The resistance level is at 0.9000, followed by 0.9060 and 0.9150.
The support line is at 0.8900, followed by 0.8850 and 0.8800.

Keep an eye on the ECB interest rate and deposit rate decisions, to be released at 11:45 GMT today. The market expectations are the rates will likely remain unchanged. Yet we need to pay attention to the ECB president Draghi’s statement, to be released subsequently at 12:30 GMT, as unexpected wording will cause volatility for the Euro.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

EM Markets sale-off spreading to DM

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...


In the past 24 hours Bitcoin has lost -0.96% and reached $6472.16379057. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -3.23% and is now at $204.037468729. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: