The word that can best describe the $uros to poundsrts is drift following the last 4 days of price action with a series of dojis candles with varying degrees of wick above and below.  Despite prices being above all three moving averages the trend, if one could call it that, is sideways with a bearish tone and the only point of any significance in the last few days has been the bounce off the 14 moving average in yesterday’s trading session.  Whilst there is little in the daily chart to suggest that recent bullish momentum will continue any fall back will be limited to the strong 0.90 support level so any trading is automatically restricted between this level and the 0.945 region above.

The main $undamental news already been released in Europe with the German ZEW sentiment index coming in dramatically better than expected at -3.5 against a forecast of -7.7 and the key news for this evening is speeches from both Jean Claude Trichet and Mervyn King so we may see some volatility in the evening session.

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