There is only one way to trade the euro sterling at present as I outlined in yesterday’s market commentary and that is to trade on the short side for the time being and indeed in today’s London session we have already breached our initial target of 0.85.  Yesterday’s candle produced a nice neat widespread down bar which took us well below the minor resistance at 0.86, and with all three moving averages now beginning to point to a further sharp decline we are now well on the way to looking at a medium term target of 0.80 where strong support awaits, thereby offering plenty of opportunities to take some pips.   My trading suggestion for today is as for yesterday which is to continue adding to any short positions and locking in profits as we trade this current trend.

The $undamental newsthe economic calendar for both the euro and sterling can be found on the Eurodollar and pounds to dollars site respectively.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.