My trading suggestion from yesterday was to stay out until all the $undamental newsthe economic calendar had been released, and as outlined in yesterday’s market commentary the 88 region and above is proving to be remarkably resistant to any sustained move lower by the $uros to poundsr, evidenced by this morning’s price action which following an initial attempt to move lower, has promptly rebounded higher creating a huge bullish engulfing candle.  If this holds for the remainder of the day then we could well see a longer term reversal back towards the consolidated trading range of the last few weeks.  A close above the 9 and 14 day moving averages today would add weight to this analysis and we therefore need to wait for the end of the trading session, particularly in the light of the ongoing press conference by ECB Chairman Jean-Claude Trichet coupled with the bank stress reports in the US which whilst not directly related will certainly have an impact.

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.