Yesterday’s wide spread down bar on the daily chart for the $uros to poundsr, confirmed the bearish signal of Monday which I discussed in yesterday’s market commentary, and which now reinforces the view that this was merely a temporary reversal from the bearish trend lower, and that we should now see the downwards move established once again. Indeed this has already been the case in early trading today, with the 0.86 price region under pressure once again. As outlined yesterday, my initial target in the short term is a re-test of the support in place at 0.85, and if this is breached then we should see a much deeper move possibly as far as 0.80 in the next few weeks. Indeed this area may well be the defining point for the euro pound exchange rate longer term, as the support here is extremely well established and very broad, so any penetration here would need sustained momentum to be successful. My trading suggestion for today, is to look for short positions using the 30 minute and 60 minute charts for your entry point to the trades, entering the market on any short term reversal higher.

With regard to the $undamental newsthe economic calendar for the euro and the UK pound, I have covered these in detail for you on the euro dollar site and the 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.