Last week’s trading in the $uros to pounds characterized by daily candles with deep upper shadows all suggesting a bearish flavour to the currency pair which duly arrived on Friday in the shape of a wide spread down bar, breaching both the 9 and 14 day moving averages and closing the week below all three.  Also of significance was the fact that the high of each of these candles failed to penetrate the 40 day moving average which acted as a barrier to any move higher adding weight to the bearish tone.  This sentiment has continued in this morning trading session and we now await once again to see whether the 87.50 to 88 acts as a strong support and prices subsequently reverse higher, or whether it is breached this time with a deeper move to follow.  Naturally we need to wait and if the latter occurs then it should provide some excellent trend trading opportunities for the short side.

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