Forex Technical Anlaysis

Following Friday’s breakout on the daily candle chart, with the strong move above the resistance at 0.8650, yesterday’s $orex technical analysisgested we would see a continuation of the move, and indeed to date this has been the pattern in the current trading session today, with the euro gbp pair moving strongly higher once again. With all three moving averages now providing good support to the move higher, and with the strong platform of support below, we should see this pattern continue during the remainder of the week, with our initial target being 0.8800 where we begin to see some minor resistance which could impede progress. However, should we see this level penetrated then we may see a re-test of the 0.9000 price handle once again, as the euro gbp recovers from the lows of the last few weeks. Technically the pair are now looking strong once again and my trading suggestion for tomorrow is the same as for today – small long positions intra day with small profit targets and with a stop loss below the support region outlined above.

$undamental Forex Analysisrong>

At last we have some $undamental newsboth Europe and the UK following today’s quiet start to the week with the first numbers coming from Europe with the German Final GDP data set, a minor news item as these figures are already in the public domain having been released 10 days earlier as the Preliminary GDP – a much more significant fundamental news items and one which surprised the market with a growth figure, which many analysts ( and indeed the markets ) viewed with some scepticism. The forecast for tomorrow is for 0.3%, the same as for last time. This is followed in the UK by the Nationwide HPI release which will give further insight into the state of the UK housing market which is forecast to show a fall from last months 1.3% to tomorrow’s 0.6% – not a great surprise given that we are in the depths of the summer holiday season, and is followed almost immediately by the BBA Mortgage approvals – so a double snapshot of the market. Approvals are forecast to show a slight rise from last time at 37.90 from 35.20 last time – a modest improvement ( but very small). The final piece of news for fundamental forex analysis is the NBB business which is released in Belgium – another composite index which is expected to show a slow improvement from last months -22.8 to this month’s -19.70.

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.