- EUR/GBP has shown a decisive breakout above 200-DMA at 0.8595, bias higher.
- EUR has been supported largely by a pick-up in the risk-on trade coupled with increasing weakness in the greenback.
- Upside over the last hour gained extra traction, following the comments from the German Chancellor Merkel.
- Merkel said that the euro is “too weak” and hence, makes German products cheaper.
- Eurogroup meeting could get some attention today ahead of advanced PMIs later in the week and ECB-speakers.
- Break above stiff resistance seen at 0.8595 (converged trendline and 200-DMA) has raised scope for test of 0.87 levels.
- Momentum indicators on weekly charts are biased higher. The pair has broken above weekly 50-SMA at 0.8534.
- Near-term reversal in trend likely on close below 200-DMA at 0.8595
Support levels – 0.8595 (200-DMA), 0.8516 (23.6% Fib of 0.92253 to 0.82970 fall), 0.8484 (20-DMA)
Resistance levels – 0.8651 (38.2% Fib of 0.92253 to 0.82970 fall), 0.87, 0.8735 (Mar 29 high)
Recommendation: Good to go long on dips around 0.8620/30, SL: 0.8570, TP: 0.8650/ 0.87/ 0.8735
FxWirePro Currency Strength Index: FxWirePro’s Hourly EUR Spot Index was at 136.897 (Bullish), while Hourly GBP Spot Index was at -32.5935 (Neutral) at 1030 GMT. For more details on FxWirePro’s Currency Strength Index, visit http://ift.tt/2fd4Y8T.
The material has been provided by InstaForex Company – www.instaforex.com
May 22, 2017 at 04:44PM
from
No comments:
Post a Comment