EURGBP,H1 and H4
European stock futures are rallying with U.S. futures, after a largely positive session in Asia. The Ger30 is closed for a holiday and Italy’s MIB continues to underperform and is down -1.58% as investors fret about the populist coalition that about to take government and is already drawing its battle lines with the rest of Europe. The UK100 meanwhile is up 0.46%, the CAC 40 0.26% and the Euro Stoxx 50 still up 0.07% amid signs that the Sino-American trade war is on hold for now and as EUR and Pound slide not just against the dollar.
The impressive rally of UK100 so far today, at new record highs at 7844.6, weighed on pound, with GBPUSD drifting lower to 1.3394 and EURGBP, rising sharply on London open up to 0.8762. The run of EURGBP has gave signs of the possible flip of the downwards scenario seen since May 10. The pair has broke above the range seen the last 3 day’s, within 0.8710 – 0.8750, with the latter be the confluence of the latest 2 up fractals in the 4-hour chart, but also the 50-DAY SMA. A sustain price action above this level and a possible closing today above it, would suggests that bulls are back and trying to gain the control of the pair. Hence if this is confirmed the pair is likely to retest the resistance levels within 61.8 Fibonacci retracement leel and 200- DAY EMA, at 0.8780-0.8800. Support comes at 0.8720.
In the hourly chart, the latest hourly candle, has definitely presented a strong indication to the upwards for today, since it is a relatively strong bullish candle which break and close above the 38.2% Fibonacci level. The pair is currently traded above 20 and 50-period SMA, at 0.8760, with the upper Bollinger Bands pattern being extended to the upwards. The momentum indicators have been gradually increasing their upwards progress, with RSI retesting the 70 level. A cross of the RSI above the 70 level would be a sign of the further upwards steam. The MACD lines have finally crossed to positive territory, but MACD is flattening above its trigger line, something that implies to a neutral to positive bias for the pair today.
The Initial support of the uptrend channel is at the latest swing low at 0.8735, while Resistance is at 50% Fibonacci level at 0.8775 and 0.8785.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.