Technical analysis – EURGBP 4-hourly about to break euro uptrend
November 1, 2013 9:41 am
The recent selling of the euro has benefitted the pound. The UK is of course outside the Eurozone and the pound can have significant fluctuations against the euro. However, the UK is still seen as close enough to Europe to be influenced by negative or positive developments in the Eurozone.
Currently the euro uptrend, which was in place during most of October, is being challenged. Certainly a break below the 0.8427 support level would cancel the uptrend.
Such an event would open the way for the challenge of the 1st October low of 0.8331, which is also the 9-month low.
If there is a reaction to the steep selling move of the previous 2 trading days, such a bounce could run into some initial resistance at 0.8508 area and then at the 0.8584 level of October 29 which was also the 2-month high.
The MACD indicator is bearish, as the MACD is negative and below its signal line. However, given the extreme negative readings and the significant distance between the MACD and the red signal line, this also indicates oversold conditions.
The recent selling of the euro has benefitted the pound. The UK is of course outside the Eurozone and the pound can have significant fluctuations against the euro. However, the UK is still seen as close enough to Europe to be influenced by negative or positive developments in the Eurozone.
Currently the euro uptrend, which was in place during most of October, is being challenged. Certainly a break below the 0.8427 support level would cancel the uptrend.
Such an event would open the way for the challenge of the 1st October low of 0.8331, which is also the 9-month low.
If there is a reaction to the steep selling move of the previous 2 trading days, such a bounce could run into some initial resistance at 0.8508 area and then at the 0.8584 level of October 29 which was also the 2-month high.
The MACD indicator is bearish, as the MACD is negative and below its signal line. However, given the extreme negative readings and the significant distance between the MACD and the red signal line, this also indicates oversold conditions.
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