Euro Currency Recovers from the low price at 0.8535

The euro currency had hit a fresh high price level of 0.8535. The EUR/GBP currency exchange rate then retraced some of its gains to trade near 0.8525/6. This key Forex market looks to make new gains headed into Wednesday’s trade session.

Consumer price data is in focus today. The euro area is releasing final monthly consumer price index (CPI) data. The United Kingdom is publishing their monthly core and headline consumer price index numbers. The UK will also publish monthly factory gate prices, producer price index (PPI) as well as monthly house price index (HPI) data.

The United States also has a high impact schedule. The Federal Open Market Committee (FOMC), the policy arm of their central bank, will release their monetary policy meeting minutes.  The United States will also publish weekly crude oil inventory numbers, monthly housing starts and monthly building permits numbers. 

Forex traders, especially those trading sentiment linked currencies like the euro and British pound will be watching Afghanistan closely. The Taliban have seized control of the country.

Daily Euro Currency Technical Analysis (EUR/GBP)

Looking at the above daily MT 4 price action chart, the euro currency is trading around 0.8520 to 0.8525. The key simple moving averages are looking flat as the EUR/GBP currency exchange rate remains below them. The fifty (50) day simple moving average lines up at 0.8547.

The one hundred (100) day simple moving average is near 0.8587 and the two hundred day simple moving average is in play near 0.8718.

While below 0.8560, EUR/GBP bears can target 0.85. The next layer of technical support lines up at 0.8475 with the year low price level of 0.8450 then coming into focus. On the upside, a daily close above the congestion zone at 0.8550 to 0.8560 opens the door to challenge 0.8587/8 next.

The next upside level is at 0.8650 before the 200 day simple moving average at 0.8718. The 14 day relative strength index (RSI) is trending higher above the mid-line not signaling oversold in this Forex market.