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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Has the #Euro been saved? Find out from @CVecchioFX here: https://t.co/eiXfOTyGa6 https://t.co/AyRiYpb4cN
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/ygwjGNvS61
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
A "Slow-Burning" EUR/GBP Trade with Lots to Like

A "Slow-Burning" EUR/GBP Trade with Lots to Like

2013-12-05 20:45:00
Liam McMahon, Head Forex Trading Instructor
Share:

Talking Points:

  • ECB, BoE Both Leave Rates Unchanged
  • EUR/GBP Breaks Key Trend Line Resistance
  • Entry, Stop, and Target Levels for This Trade

The euro (EUR) has traded stronger today after the European Central Bank (ECB) left interest rates unchanged (as expected) and did not announce any plans for any new liquidity measures.

While the majority of the market was likely expecting a similar outcome, enough people were betting that new long-term refinance obligations (LTROs), or another such funding scheme, would be announced, and as a result, we saw EUR squeeze higher against all major currencies.

Specifically, EURGBP is up 0.92% today after the Bank of England (BoE) left interest rates unchanged in the UK as well. The announcement left British pound (GBP) bulls looking for another catalyst to push the pound higher.

The difference between the two currencies now offers a potential long EURGBP trade, as the pair has broken above its descending trend line dating back to late October.

Guest Commentary: Potential Long Set-up in EUR/GBP

A_Slow-Burning_EURGBP_Trade_with_Lots_to_Like_body_GuestCommentary_LiamMcMahon_December5A_1.png, A "Slow-Burning" EUR/GBP Trade with Lots to Like

At the time of writing, the 200-period exponential moving average (EMA) and 38.2% Fibonacci retracement level at 0.8379 is capping price, and any pullbacks towards 0.8350 and 0.8325 would offer excellent opportunities to get long. In that case, stops would be placed just below 0.83, targeting first 0.8425 (the 50% Fib level) and then 0.8450 (the 61.8% Fib level).

This pair tends to be a slow burner, but it is also well isolated from US dollar (USD) volatility, which makes it especially attractive as we enter a key month for the greenback.

By Liam McMahon, Currency Strategist, GlobalFxClub.com

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

DISCLOSURES

News & Analysis at your fingertips.