Forex Marketz Daily Forex News – Fully Markets Update
EUR/GBP (0.73220)
Threes points to consider
- Euro’s recovery stall below the June top
- Short trade is an option, but patience is needed from a risk to reward perspective
- Trade Strategy: Stand Aside
The EUR/GBP Forex market has paused below the 0.74 handle as the euro is consolidating. This comes after the euro hit its highest level in four months against the Sterling. This Forex market launched higher as risk appetite left the global financial markets. Please refer to the below daily EUR/GBP chart for today’s technical analysis. It is also interesting to note a correlation with the Euro Stoxx 50 Index.
Technical Analysis
Let’s now discuss today’s EUR/GBP technical analysis. There is near term support lining up at 0.7290. A daily close below this technical level challenges a key pivot located near 0.7210. The alternative EUR/GBP analysis, should the euro reverse course thus supporting this Forex market notes technical resistance lining up at 0.7386. This is the June 4 high. A break above this level will challenge the next technical resistance lining up at 0.7480/81. This level is near the May 7 top.
Trade Strategy
I will now discus my EUR/GBP trade strategy. Overall the long term dominant trend for the euro is bearish. The recent recovery has been corrective as I am looking for an opportunity to enter a short euro trade in line with my long term bearish EUR outlook. This means I am not looking for a bullish reversal with follow through to. With that said, price action is too close to a support level to enter a short euro trade. From a risk to reward perspective, timing is not quite right. For now I will stand aside to monitor my charts for a better trade opportunity to come along. For today, I am flat in the EUR/GBP Forex market.
