11 Jul 2014
EUR/GBP has the reasons to go down
FXStreet (Moscow) - EUR/GBP opened the day at 0.7942, and since that time moving within 8-pip range with some short spike to 0.7949.
A long road down under
After a period of vacations around the area of early July highs the pair resumed the slide, and it has all the reasons to continue its move lower provided the Portuguese Bank story ends up with a default. The yesterday’s French and Italian industrial data confirmed the problems with growth in the second and third largest economies of the euro zone. If the process evolves to the trend, the ECB will have to come up with additional stimulus in form of QE. In this case, there is a long road down under for the pair in store.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.7949, with support below at 0.7928, 0.7913 and 0.7892 with resistance above at 0.7964, 0.7985, and 0.8000. Hourly Moving Averages are largely bearish, with the 200SMA at 0.7952 and the daily 20EMA bearish at 0.7985. Hourly RSI is bullish at 41.
A long road down under
After a period of vacations around the area of early July highs the pair resumed the slide, and it has all the reasons to continue its move lower provided the Portuguese Bank story ends up with a default. The yesterday’s French and Italian industrial data confirmed the problems with growth in the second and third largest economies of the euro zone. If the process evolves to the trend, the ECB will have to come up with additional stimulus in form of QE. In this case, there is a long road down under for the pair in store.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.7949, with support below at 0.7928, 0.7913 and 0.7892 with resistance above at 0.7964, 0.7985, and 0.8000. Hourly Moving Averages are largely bearish, with the 200SMA at 0.7952 and the daily 20EMA bearish at 0.7985. Hourly RSI is bullish at 41.