EUR has a good day LONG EURGBP

EURGBP, Daily                 

Yesterday’s intra-day 1 hr chart trade on the EURAUD netted a low risk 33 pips as it rallied from our entry at 1.3767 to both target 1 and target 2 at 1.3800 and eventually onto a day high of 1.3876. The Daily candle on this pair is now looking for a possible entry. One to watch, it currently trades at 1.3852 and a break and breach of 1.3900 would be necessary to confirm any entry position.    

The EURO had a relatively good day yesterday as all eyes were on the strong news out of the US and President Trumps first impromptu (90 minutes notice) and solo press conference. He announced his new labour secretary nominee as Alexander Costa as questions resurfaced about the “quality” of the stock market rally since Trump was elected, even as the President himself spent some considerable energy in his press conference defending his administration and jousting with reporters. This issue prompted a press release from Catalyst Funds that they have largely completed re-balancing of their reputed $17 bln short-SPX volatility call spread positions, actions which some claimed contributed to the relentless rise on stocks since November, which fell on the news.

The moving Euro prompted a long position from last nights close on the Daily candle with entry at 0.8535 and target 1 half the 14 day ATR and 50.0 Fibonacci level at 0.8575, target 2 at the 38.2 Fibonacci level at 0.8635.  The pair broke both the shorter 10 day EMA and the 20 day moving average on last night’s close and completed a three candle bull run. The shorter term MACD has turned and shows signs of a positive move. Resistance to the move up will be the 50 day moving average at 0.8560, the RSI remains neutral although beginning to slope positively and the parabolic SAR has yet to revert.  The support zone is 0.8550 – the 200 day moving average and lower Bollinger band at 0.8420.


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Stuart Cowell

Senior Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. 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 buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.