The euro currency continues to struggle against the British pound. The benchmark EUR/GBP currency exchange rate is wallowing around 0.8550 as we head into Wednesday’s trade session.
The corrective bounce off the fifty (50) day simple moving average seems to be losing steam and the euro currency has failed to close above the two hundred (200) day simple moving average and the falling trend line in play since December 2020.
Today’s economic calendar is, once again, not very busy. The United Kingdom is not publishing any top tier economic data. The euro area’s largest economy, Germany, will publish their monthly consumer price index.
The United States will release their monthly headline and core consumer price index (CPI). Also of interest to the financial markets, the U.S. Labor Department will publish weekly initial and continuing jobless claims numbers. The U.S. Energy Information Agency (EIA) weekly crude oil inventory data.
Daily Euro Currency Technical Analysis
Looking at the above daily MT 4 price action chart, the 14 day MACD histogram looks positive for the euro currency. This could lead to short-term corrective gains for the EUR/GBP Forex market.
On the upside, if the shared currency breaks north, there could be a challenge of the 200 day simple moving average and the falling trend line near 0.8580.
A daily close above 0.8580 opens the door for the EUR/GBP Forex market to challenge the monthly high price point lining up at 0.8595 next. The September high price point in play at 0.8660 then comes into focus.
On the downside, 50 day simple moving average lines up near 0.8521/20. A daily close below this level brings the April low price point at 0.8470 into focus.
The August monthly low price point lines up at 0.8450. a close below the August low opens the door for the key psychological barrier lining up at 0.84.