Forex Marketz Daily Forex News – Fully Markets Update
Overall, the sentiment linked euro currency is on the defensive in the Forex universe. The British pound also seems to be in favor against the single currency as the EUR/GBP currency exchange rate inches lower.
The EUR/GBP Forex market, on the above daily MT 4 price action chart, is trading below the congestion zone in play at 0.8530 to 0.8538. This increases the bearish price action for the euro currency with possible more losses ahead.
As the euro is a sentiment linked currency, traders are watching global coronavirus news. There is a new Covid-19 mutation out of Brazil. This is weighing on trader market sentiment.
Johnson & Johnson, as far as supply side issues are concerned, has said that they will be unable to meet committed vaccine supplies. This is after a problem in their factory.
Pfizer says that their coronavirus vaccine has a one hundred percent efficacy for children and there are no new Covid-19 cases in Australia’s New South Wales (NSW). Escalating tensions between China and the United States are also worrisome.
Forex traders shrugged off President Joe Biden’s $2 trillion infrastructure fiscal stimulus plan. His massive spending package faces fierce resistance in the U.S. Senate.
Daily Euro Currency Technical Analysis (EUR/GBP)
Looking at price action, there is a downside barrier near the 38.2 percent Fibonacci level at 0.8467. The next downside barrier lines up at 0.8385 with the 61.8 percent Fibonacci level at 0.8405 then coming into play. A sustained close below this level opens the door for a support congestion zone at 0.8278 to 0.8282.
On the upside, the EUR/GBP Forex market notes initial technical resistance in play at 0.8538. A daily close above this level could end some of the selling pressure in this Forex market.
However, to bring buyers back into this market a daily close above a congestion zone in play at 0.8760 to 0.8782 is needed.
