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1 Nov 2013
EUR/GBP contained by 0.8475 resistance
FXstreet.com (London) - Yesterday's session was dominated by one thing and that was a weak Euro across the board and EUR/GBP gave up the territory of 0.8540 for high ground on the 0.84 handle.
EUR/GBP is currently attempting the 0.8475 resistance again on the bid. Meanwhile, research teams at Investec bank explained that some attributed the move to month end flow, others to the low print in inflation and the high unemployment data which fuelled ECB rate cut speculation, and some to the fact the Euro was at 2 year highs against the Dollar so a less dovish FOMC statement on Wednesday night was a good enough excuse to see larger profit taking in a pair still more positioned for moves higher than most. “Yesterdays data showed eurozone inflation fall to its lowest level since Nov 2009, whilst unemployment reached another record high. Core inflation fell from +1.0% to +0.8% which will only add to the pressure already on the European central bank to cut interest rates. This news combined with the fact the jobless rate in the euro zone was at a record 12.2% was enough to kick start a run on the single currency”.
EUR/GBP Levels
The 20 DMA is 0.8490, the 50 DMA is 0.8463 and the 200 DMA is 0.8537. RSI (14) reads 49.75. Supports are ascending from 0.8368, 0.8376, 0.8425, 0.8443 and 0.8455. Spot is currently 0.8471 while next resistances are 0.8505, 0.8544, 0.8565 and 0.8585.
EUR/GBP is currently attempting the 0.8475 resistance again on the bid. Meanwhile, research teams at Investec bank explained that some attributed the move to month end flow, others to the low print in inflation and the high unemployment data which fuelled ECB rate cut speculation, and some to the fact the Euro was at 2 year highs against the Dollar so a less dovish FOMC statement on Wednesday night was a good enough excuse to see larger profit taking in a pair still more positioned for moves higher than most. “Yesterdays data showed eurozone inflation fall to its lowest level since Nov 2009, whilst unemployment reached another record high. Core inflation fell from +1.0% to +0.8% which will only add to the pressure already on the European central bank to cut interest rates. This news combined with the fact the jobless rate in the euro zone was at a record 12.2% was enough to kick start a run on the single currency”.
EUR/GBP Levels
The 20 DMA is 0.8490, the 50 DMA is 0.8463 and the 200 DMA is 0.8537. RSI (14) reads 49.75. Supports are ascending from 0.8368, 0.8376, 0.8425, 0.8443 and 0.8455. Spot is currently 0.8471 while next resistances are 0.8505, 0.8544, 0.8565 and 0.8585.