Looking at the benchmark EUR/GBP currency exchange rate and the above hourly MT 4 price chart, the euro currency has broken below the short-term 21 hour simple moving average (SMA). This Forex market has failed to extend gains from the key 0.90 price point.
There is some strength returning to the almighty U.S. dollar (USD) as Treasury yields and additional fiscal stimulus hopes are boosting the greenback. This has weighed against the other G-10 currencies like the euro currency (EUR).
There is not a lot on the economic calendar Tuesday. The United Kingdom is releasing their monthly BRC sales monitor and the United States will publish their weekly JOLTS jobs openings data. The euro area calendar is quiet today as is the Canadian macroeconomic schedule.
Forex traders are watching headlines out of the American Congress as the lower house, House of Representatives, is looking to impeach, for an unprecedented second time, President Donald Trump over his role in last week’s insurrection, coup and storming of Capitol Hill by right wing extremists who support him.
President Trump who will leave office on 20 January after losing a bitter election to President-elect Joe Biden has refused to concede defeat, made false allegations and launched a number of futile attempts to overturn the election in the courts. There is now worry that his supporters will continue the coup at next week’s inauguration.
Daily Euro Currency Technical Analysis (EUR/GBP)
Looking at price action, the EUR/GBP Forex market has broken out of a falling wedge chart pattern and moved lower. This comes after failing to extend gains above the technical upside barrier 0.90 and the 21 hour simple moving average.
A daily close above 0.90 opens the door to challenge 0.9028. This level is supported by the fifty (50) hour simple moving average.
The next upside barrier lines up at 0.9035 with a sustained closed above this level opening the door to challenge 0.9050.
While below the 21 hour simple moving average and 0.90, sellers look to challenge 0.8960. A daily close below this level challenge the next technical layer of support at 0.8930.