News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.49%, while traders in USD/JPY are at opposite extremes with 74.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TBOioxBaqY
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Silver: 1.67% Gold: 0.62% Oil - US Crude: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3L8HLnD5v8
  • #Bitcoin - Daily Chart - breakout to ATH . . Watch the close. . . https://t.co/W75XZqabYP
  • Now that the Bitcoin ATH is out of the way - BTC +2.1% @ $65,540 - can we concentrate on Ethereum #btc #bitcoin #eth #ethereum https://t.co/jka7AcE27J
  • Hit series ‘Squid Game’ expected to drive subscriber growth into year end. Get your market update from @RichardSnowFX here:https://t.co/fQBG9dlLfG https://t.co/4KjKPA6u8d
  • $EURUSD res has held at that 1664 spot but buyers stepped-in for some higher-low support, right around prior resistance. could have some continuation left here, next res zone 1700-1736 $EURUSD move will be key to #DXY dynamics https://t.co/oSPWzxUtCg https://t.co/0jBF75ztJe
  • Mid-Week Market Update session with special guest @tastytrade's @tastytradeRyan starting now -- join here: https://t.co/2VlNFcWn8R
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: 0.12% US 500: 0.09% Wall Street: 0.02% Germany 30: -0.17% FTSE 100: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/JOBV3OpuX9
  • RT @carlquintanilla: B of A: “The virus situation is improving rapidly and this has helped spur a pick-up in activity. .. Air travel contin…
  • $USD still holding support in the 93.43-93.73 zone shorter-term, not yet able to pose any meaningful continuation moves, still lower-lows, highs next r level, 94.17 next s level, 93.52 #DXY https://t.co/d5DtqK4xUc https://t.co/ZRCho2lSOi
EURGBP - Pending Short as 200-DMA Nears * Update*

EURGBP - Pending Short as 200-DMA Nears * Update*

Nick Cawley, Strategist

Check out our New Trading Guides: they’re free and have been updated for the second quarter of 2018

Update – Trade Opened on May @ 0.88315

Our short EURGBP positioned was opened on May 10, just above the 200-day moving average. Our targets remain the same – see story below.

EURGBP - Pending Short as 200-DMA Nears * Update*

Original Story - - EURGBP Bounce Opening a Short Trade Opportunity

Two weak currencies battling it out for dominance in a trading pair opens the door for a short-term trading opportunity, especially after a sharp move. Both the ECB and the BoE are currently unable to proceed with any kind of monetary tightening as inflation stymies policy normalization. While UK interest rates are being pushed further back – an August 0.25% rate hike is currently priced around 42.5% - and may not happen at all this year, the first interest rate hike in the Euro-Zone is not likely until mid-2019 at the earliest and even then, it is likely to be 0.10%. In addition, with Euro-Zone growth slowing down and inflation remaining stubbornly below target (near to 2%), the ECB are likely to extend their bond buying program when it ends at the end of September for at least three months, keeping monetary policy looser for longer.

On the charts EURGBP is now nearing its most expensive level since September 2017 readings, according to the relative strength indicator and is nearing its 200-day moving average which it rejected twice in the last week.

Looking at EURGBP, today’s sharp jump in the pair – after the BOE MPC meeting – may offer an opportunity to short EURGBP. We look to open the position just above the 200-day moving average, currently at 0.88315 and will place a stop just above the intersection with the short-term upward channel at 0.89000. Our first target is the recent double low at 0.86820 with our second target at the April 17 low at 0.86200.

Chart: EURGBP Daily Price Chart (April 2017 – May 10, 2018)

EURGBP - Pending Short as 200-DMA Nears * Update*

Entry Point: 0.88315.

Target 1: 0.86820 – Recent double low.

Target 2: 0.86200 – April 17 low.

Stop-Loss: 0.89000

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES