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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/ZcSPE0xkvX
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT for insight on London #FX and #CFD trading. Register here: https://t.co/AoM3UvLtcF https://t.co/zKfTmM2Lvn
  • Germany's IFO forecasts - Upgrades 2020 GDP outlook to -5.2% from -6.7% - Downgrades 2021 GDP outlook to 5.1% from 6.4%
  • BoE's Bailey says while negative rates is in the toolbox, this does not imply the BoE would use negative rates $GBP
  • BoE's Bailey says negative rates have been a mixed bag in other countries $GBP
  • BoE's Bailey says the BoE have looked very hard at scope to lower rates further, including negative interest rates $GBP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.45%, while traders in NZD/USD are at opposite extremes with 69.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xwIu29Mfxl
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/qy92JdlDpt
  • BoE's Bailey says labour demand is weak with unemployment higher than its reported number $GBP
  • For those who like their DMAs $GBP https://t.co/N24AeArRdI
EUR/GBP Technical Analysis: Euro at Risk of Deeper Losses

EUR/GBP Technical Analysis: Euro at Risk of Deeper Losses

2015-08-31 03:18:00
Ilya Spivak, Head Strategist, APAC
Share:

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro Breaks Support, Hints at Deeper Losses vs. Pound Ahead
  • Passing on Short Trade as Risk Aversion Threat Clouds Outlook

The Euro declined for a fourth consecutive day against the British Pound, with a break below chart support seemingly opening the door for further weakness. The pair found a top near the 0.74 figure after retesting resistance marked by early June swing highs.

Sellers aim to challenge the 38.2% Fibonacci expansion at 0.7210 from here, with a break below that on a daily closing basis exposing the 50% level at 0.7145. The 23.6% Fib at 0.7291 has been recast as near-term resistance. A move back above this threshold clears the way for another challenge of the June 4 high at 0.7385.

Entering short is a tempting proposition from a purely technical perspective, particularly after an intraday rebound following the bearish break brought prices upward to retest support-turned-resistance. We will tactically opt to stand side however. The Euro has found strength in risk aversion recently, and a busy week laden with top-tier news-flow threatens to unleash more of the same in the days ahead. With that in mind, we will opt against committing to a directional bias for the time being.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

EUR/GBP Technical Analysis: Euro at Risk of Deeper Losses

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

DISCLOSURES