Yesterday’s doji candle on the daily chart for the $uros to poundsr indicated a degree of indecision in the market and a possible pause point in the current steep fall, and indeed this has translated into a short squeeze higher in early trading today, which should be seen as an opportunity to enter further short positions in preparation for a deeper move down in due course.  With all three moving averages pointing lower the downwards trend will only be interrupted if the 9 and 14 day moving averages are breached in any significant way and the strong resistance now in place both at 0.86 and 0.8750, should a resolute barrier to any move higher.   The only $undamental newsthe economic calendar for Europe this morning was the release of the Trade Balance Figures which came in better than expected at -0.3 against a forecast of -1.5, and for the British Pound it was the unemployment figures which were slightly better than expected at 7.2% but still building towards a total of 3m by early next year.  My trading suggestion is to continue to look for short positions in the hourly chart with a short term target of 0.80.

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