The Euro was seen trading lower against the British pound recently, as the EURGBP pair broke an important support area. This has increased the chances of more downside in the coming sessions. So, I think we should be looking for short-term sell opportunities. Moments ago, the Euro zone consumer confidence data was released, which is putting pressure on the Euro buyers.
There was channel formed on the one hour chart of the EURGBP pair, which was breached recently. If the pair settles below the same successfully, then there is a chance of more downside moving ahead. If the pair closes below the 0.7800 level successfully, then we can enter a sell trade once it retests the broken support zone. Remember, the risk involved in this trade will be a lot lower.
Initial target should be around the 0.7760 level, and final target could be around the 0.7720 levels. Stop should be placed above the 0.7820 level.
Reviewing recent events and trades
The New Zealand dollar and the Australian dollar turned out to be the best performers during the Asian session. Both NZDUSD and AUDUSD jumped higher and tested an important resistance area. It looks like the market was finally done with the selling and we are in for a short term correction. Yesterday, the US pending home sales data was published during the NY session, which came as a disappointment. It registered a decline of 1%, compared to a rise of 3.2% in the previous month. The US dollar was seen losing ground after the release.
Fundamental Outlook for the day
Today, there are several economic releases lined up during the NY session, including the CB consumer confidence, Chicago PMI, S&P/Case-Shiller House Price Index and Dallas fed services revenues data. There can be some swing moves in the US dollar around the release. Moreover, the Canadian GDP data will be released, which is expected to register an increase of 0.2%. If the outcome surpasses the expectation, then the Canadian dollar might gain traction in the short term. During the next Asian session, the Australia’s retail sales data will also be published to ignite moves in the Aussie dollar.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
