The Euro settled down today after yesterday’s fall against the majority of currencies amid growing European and American stock markets as investors felt optimistic emphasising the end of the Greek crisis.
The pair EUR/GBP that lost more than 160 points yesterday is also trading within a narrow 30 points channel.
The pair remains under the pressure from low EU interest rates and the ECB easing policy. Further pressure is added by the strong UK economic figures. According to the latest figures by the Bank of England, inflation is going to pick up towards the end of the year and interest rates are likely to increase.
European commission continues trying to find a solution to the Greek problem. Important US news is released today at 3:30 pm (GMT +3).
With the absence of other important news, the pair is likely to remain flat until the end of the day.
Support and resistance
Starting from February 2015, the pair is trading in the range between 0.7480 (23.6% Fibonacci correction of the downward trend from 2013 high at 0.8800) and the area 0.7065-0.7035 (2015 lows).
On the daily chart the pair is moving in the downward channel (green color) to its lower border at 0.6990. On the 4-hour chart OsMA and Stochastic indicate a correction, on the daily chart they continue downward movement.
The pair is restricted by resistance levels at 0.7390 (EMA144 on the daily chart), 0.7480 (EMA200 and 23.6% Fibonacci). The breakdown of 0.7065 will open the way towards 0.6990, 0.6750, 0.6600.
Support levels: 0.7065, 0.6990.
Resistance levels: 0.7200, 0.7280, 0.7390, 0.7480.
Open short positions as soon as OsMA continues downwards and Stochastic returns to the sell zone on the 4-hour chart. Short positions to be opened at: 0.7130, 0.7180, 0.7200, 0.7240, 0.7280, stop-loss at 0.7310 and targets at 0.7065, 0.6990.
Alternatively, open long positions after the breakout of 0.7390 with targets at 0.7480, 0.7575, 0.7730.