Yesterday’s wide spread down bar added further momentum to the already bearish tone for the euro to pounds pair and closed the day well below our initial price target for the trend of 0.85 as we now hurtle headlong towards our next interim target at 0.80 where stubborn support awaits.  With all three moving averages pointing steeply lower and with an attempt to rise in this morning’s trading firmly squashed by the bears, we should continue to build short positions for the next few days with a view to taking profits as we approach the support outlined above, as well as  moving our stop losses down to lock in any profits.   Fundamental items of news on the economic calendar for the Eurozone are outlined on the main Eurodollar site as the market waits for news to to whether the German (and by extension the European) banking system is, once again, teetering on the brink of collapse as seems to be suggested by the German Chamber of Commerce in a leaked report.   Meanwhile in the UK better than expected inflation figures will mean that interest rates are likely to remain on hold for the foreseeable future.

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