Home » Technical Analysis » Euro Looks to Challenge the Support Level at 0.90

Euro Looks to Challenge the Support Level at 0.90

euro

The euro currency (EUR) on the above daily EUR/GBP MT 4 chart tried a false breakthrough above the five week long bearish channel earlier this week. This Forex market then started losing ground.

The euro currency lost steam after new surfaced that the European Union and the United Kingdom said that Brexit talks would restart. This supported the British pound.

There is not a lot on the euro area economic calendar for Thursday. The Eurozone will publish their monthly consumer confidence index. The United Kingdom is publishing their monthly CBI industrial orders expectations. Also, Bank of England and Monetary Policy Committee (MPC) member Haldane is speaking today.

The United States is releasing their monthly CB leading index as well as monthly existing home sales. Labor data will also be watched as the U.S. Department of Labor will release weekly first time unemployment claims as well continuing claims labor data. Canada’s economic calendar is quiet.

Both the sentiment linked British pound and euro currency will react to increased trade tensions between China and the United States. Secretary of State Mike Pompeo has announced that the U.S. will add another six Chinese firms to the list of foreign missions.

Daily Euro Currency Technical Analysis (EUR/GBP)        

Looking at the above EUR/GBP currency exchange rate, the British pound has gained nearly 100 pips as this Forex market looks to challenge the 14 October low price point in play at 0.90 support level. The short term rising trend line from the April and early May price points then comes into play.

This downside barrier lines up at 0.8945. The 3 September low price point lining up at 0.8870 then comes into focus.

On the upside, the first layer of technical resistance to monitor comes into play at the fifty and one hundred (50, 100) day simple moving averages. These levels are at 0.9045 and 0.9065, respectively. The 20 October high price point then lines up at 0.9145.

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.

Check Also

gold

Spot Gold Looks for a Bottom at $1,785.50 per ounce

0.0 00 Looking at the popular spot gold futures contract (XAU/USD) on the above daily …