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Euros To Pounds – 6th February 2009

Following on from Wednesday, Thursday gave us another wide spread down bar on the $uros to poundstrong>currency, which has established the short term trend downwards, with the 9 day and 14 day averages crossing, and the 40 day about to turn. Having now broken through the support level at 0.8900, we should now see prices fall further down to the resistance level at 0.8550 in the next few days. Friday is always a difficult day to forecast as many traders square their positions for the weekend, so expect to see some profit taking from the last few days, and we may see small bounce today with a possible up bar. Having made money in the last two days, I am waiting until Monday before entering any new positions, and my suggestion would be to do the same today. The main market news today is of course the Non Farm Payroll data, due out this morning in the US – these figures tend to dominate all else, and despite the fact that we have have had a sharp fall in manufacturing production – this is just in from Bloomberg news :

U.K. manufacturing fell for a 10th month, the worst streak of contraction in almost three decades, and insolvencies rose in the fourth quarter as the recession deepened. Manufacturing production dropped 2.2 percent in December from the previous month, the Office for National Statistics said in London today. Individual insolvencies in England and Wales rose 8.2 percent in the fourth quarter to 29,444, the highest since 2006, the government’s Insolvency Service said in a separate report.

The above figures have had little effect on the euro pound currency as we now wait for the NFP figures – if you would like some further details on these please just follow the link to the euro to dollar site. Have a great weekend and good luck with your trading today.