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Forex Chart Analysis – Euros To Pounds Chart 18th August 2009

Forex $echnicallysis

The euro to pounds chart is at an interesting point as following its recent reversal higher we are once again re-testing the 86.50 price handle where there have been no less than 8 previous attempts over the past 7 weeks.  The daily chart now looks bearish once again and given yesterday’s candle which closed as a shooting star, coupled with that of Friday, both of which have deep upper shadows, would suggest that we may see a fall in the euro in the short term and this may occur in the next trading session.   Whilst this move may only be a relatively small one it may well present us with a profit target of up to 200 pips as we move to re-test the 0.84 price support once again, with a repeat of the trading pattern last seen at the end of July and early August.

Forex Fundamental Analysis

The $undamental newsthe economic calendar for the euro to pounds pairs started in the UK with CPI, Core CPI and RPI all of which came in marginally better than expected with the most important in the CPI figure at 1.8% against a forecast of 1.5%.  As deflationary concerns appears to have temporarily eased the Euro duly obliged by falling (as outlined above).  Meanwhile this pair now has to wait for the German ZEW Sentiment index, generally considered a leading indicator and is one of the most important used by $orex traders currency analysts.  The index is based on a survey of around 350 German institutional investors and analysts who are asked to rate the outlook for the German economy over the next 6 months.  The forecast for this morning is for a figure of 45.2, an increase over last month’s figure of 39.5 and if this comes in better than expected the impact is generally seen in the euro vs dollar currency pair.

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.