Forex Marketz Daily Forex News – Fully Markets Update
Looking at the euro currency in the benchmark EUR/GBP currency exchange rate, price action is edging higher and trading near 0.8960.
Prices, yesterday, broke above the two hundred (200) hour simple moving average overnight and remains above this level while challenging a downward sloping trend line in play since 30 April.
The economic calendar is very quiet on Wednesday. Neither the United Kingdom nor the European Union have much in the way of economic data scheduled for release. The euro area is pretty quiet today as is Canada. The United States will release weekly crude oil inventories.
With very little economic news to drive price action, the euro currency and British pound could drift today. Forex traders will be watching news headlines. Specifically anything about the ongoing coronavirus pandemic (Covid-19) and European Union vaccination efforts. Countries in the euro area are also starting to ease some restrictions.
The United States has passed fifty percent of the adults in their population have been vaccinated against the coronavirus. Moderna is also reporting that nobody has contracted Covid-19 since receiving their vaccine.
Daily Euro Currency Technical Analysis (EUR/GBP)
The relative strength index (RSI) is pointing to overbought as a possible correction could happen. The euro currency could correct lower before coiling higher against the British pound.
The EUR/GBP Forex market has immediate technical support at 0.8665 with the 200 hour simple moving average towards the downside. This layer of technical support lines up at 0.8650.
With that said, a daily close below 0.8650, opens the door to challenge the downside barrier lining up at 0.8630. The next layer of technical support then lines up at 0.8590.
On the upside, the EUR/GBP currency exchange rate has immediate technical resistance, as mentioned above, lining up at 0.8665. A daily close above 0.8665 brings the round number of 0.87 into play.
The next upside area is at a congestion zone consisting of multiple layers of resistance at 0.8715 to 0.8720.
