EURGBP – Critical Break, More Losses On Cards?

EURGBP – Critical Break, More Losses On Cards?

Key Highlights            

  • The Euro moved down against the British Pound and broke a major support area.
  • There was a contracting triangle pattern formed on the hourly chart of the EURGBP pair, which was broken during the Asian session.
  • Today, the German Unemployment Change will be published by the German Statistics Office, which is forecasted to post a change of -7K in Jan 2016.
  • Moreover, the German Unemployment Rate is forecasted to remain stable at 6.3%.

EURGBP Technical Analysis

The EURGBP pair came under a lot of bearish pressure lately after solid gains this past week. There was a contracting triangle pattern formed on the hourly chart, which was broken by sellers during the Asian session to ignite a downside rally.

EURGBP

The pair is now well below the 100 and 200 hourly simple moving averages, which is a sign that there is a chance of more losses in the near term.

If the pair corrects higher from the current levels, then an initial resistance could be around the broken triangle support trend line. Moreover, the 50% Fib retracement level of the last drop from the 0.7622 high to 0.7539 low may also serve as a resistance.

German Unemployment Change

Today, there are a couple of important releases in the Euro Zone, including the German Unemployment Change, which is a measure of the absolute change in the number of unemployed people in Germany using seasonally adjusted data will be published by the German Statistics Office. The forecast is lined up for a change of -7K in Jan 2016. If there is a miss in the outcome, then there is a chance of the EURGBP pair coming under more bearish pressure. Moreover, the German Unemployment Rate is forecasted to remain stable at 6.3%.

New Zealand ANZ Commodity Price

Today in New Zealand, the ANZ Commodity Price, which is considered as an early indicator of export price changes was released by the ANZ National Bank. The outcome was disappointing, as the ANZ Commodity Price declined by 2.3% in January 2016.

However, the reaction in the NZDUSD pair was the opposite. The pair climbed higher during Asian session, and looks set for more gains in the near term. On the upside, the 0.7550 level can be seen as a resistance area.

 



Mar