Yesterday’s wide spread down bar on the daily chart for the euros to pounds pair, merely confirmed our analysis of yesterday, that the short term rally in the pair has now run out of steam, and a move lower is now likely, with a re-test of the support in the 0.84 – 0.8450 region in the short term. This has been confirmed once more in early trading today, with the potential support from the 14 day moving average having been ignored as prices continue to move lower, helped by some positive news in the UK this morning for house prices. However, for longer term trend trading my advice would be to wait until we have seen a clear break and hold below the support level outlined above, and when this occurs we should be able to open some longer term positions with an initial target of 0.80 in the medium term.
The only fundamental news of note today on the economic calendar for he UK was the HPI housing data which showed house prices rising for the third straight month in a row, which helped the UK pound move higher against most of the major currencies. In Europe, the German unemployment numbers came in better than expected as did Consumer Confidence, and you can find full details on the economic calendar.
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.
