Forex Marketz Daily Forex News – Fully Markets Update
The euro currency is on the back foot against the British pound trading around 0.8590 as we head into the weekend. The EUR/GBP currency exchange rate saw its biggest daily sell off in two weeks on Thursday.
After falling lower, the euro is trading below the one hundred and two hundred (100, 200) hourly moving averages as well as a short term rising trend line. The relative strength index (RSI) is also signaling oversold conditions.
Today, Italy will publish their quarterly unemployment rate. Germany is releasing monthly WPI data. The United Kingdom will release monthly gross domestic product data as well as monthly industrial production and manufacturing production figures,
The UK is also releasing their monthly goods trade balance and index of services (3M/3M). The University of Michigan will release their initial monthly consumer sentiment index and inflation expectations for the world’s largest economy. Canada will publish their monthly capacity utilization rate.
On Thursday, despite an uptick in inflation, the European Central Bank (ECB) left their monetary policy settings as is. The central bank made no changes to their monthly asset purchase program or interest rates. During her news conference, ECB President Christine Lagarde avoided talks about tapering.
Daily Euro Currency Technical Analysis (EUR/GBP)
Looking at price action on the above EUR/GBP hourly MT 4 price action chart, the relative strength index is trying to normalize. For now, the euro currency could see a corrective move higher towards former support now technical resistance levels at 0.86 and 0.8605.
A daily close above those levels would bring the one hundred and two hundred hourly moving averages into play. These two moving averages are converging around 0.8610. The next upside barrier lines up at 0.8620 and then Tuesday’s high price point at 0.8630 comes into play.
On the downside, the swing low at 0.8585 is the first downside barrier with the monthly low price point at 0.8565 then coming into play. Last month’s low price point at 0.8560 then pops onto the radar before the mid-March low price point in play at 0.8530.
