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Euro Currency Slides below 86.10 Pence


Looking at the benchmark EUR/GBP currency exchange rate on the above daily MT 4 chart, the euro currency has fallen below 0.8610. This Forex market looks a bit directionless while below the short-term ten (10) day simple moving average (SMA) as price action is being guided lower by a multi-day old falling trend line.

As far as economic data is concerned, France is publishing monthly industrial production numbers and the United Kingdom has nothing on their economic calendar. The United States is publishing both core and headline monthly consumer price index (CPI) data.

The sentiment linked euro currency is paying close attention to the U.S. House of Representatives voted, overnight Tuesday, to advance President Joe Biden’s $1.9 trillion coronavirus pandemic rescue package.

Today at 10 am GMT they will consider the bill where it is expected to pass along party lines. No Republicans are supporting this bill as the United States remains deeply fractured. Once the bill is passed, as early as today, President Joe Biden can sign it into law.

If passed, this bill is one of the largest U.S. fiscal aid packages since the 1960s. It will also give President Biden and the Democrats, who control Congress, a large legislative victory. President Biden has been in office less than two months.

Daily Euro Currency Technical Analysis (EUR/GBP)

Looking at price action, the euro currency is also trading below a two week old horizontal support level in place at 0.8595.

The next downside barrier lines up at 0.8540, which is the lowest price point that the EUR/GBP has traded at since late February 2020.

The next layer of technical support then lines up at the round number of 0.85. On the upside, a daily break above 0.8635 opens the door for the 21 day simple moving average in play at 0.8680. 

The next upside barrier comes into play at a congestion zone. This congestion zone is a monthly horizontal area at 0.8730 to 0.8740.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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