Seven Days Ahead offer financial and commodity market forecasting, technical trading analysis, forex forecasting service, stock market trading recommendations, guides and strategies in the UK.Sign up now

Is Bear Risk In Euro/Sterling Growing ?

09 April 2009

We had been wondering whether the Feb/Mar rally in EUR/GBP was a temporary/corrective affair, precursing another move to the downside. Certain s/term bear signs have been seen, keeping the scales skewed in the bears’ favour.

MONTHLY CHART: The surge in this cross rate failed to reach the topical parity level. We see the 0.8555 38.2% retracement as a key level now – if this fails then the long term chart structure would not favour the bulls.

DAILY CHART: The recent recovery was thwarted by the key 0.9519/28 area, 26-Jan high and 76.4% rebound level. We had been thinking that this was just a corrective bounce ahead of another notable downleg –and recent breach of the small bull channel base projection (and 0.9072 12-Feb high) supports this view. Further confirmation of this would come after a failure of the small 0.8837 76.4% pullback level. Of course, a recovery and close above 0.9519/28 would be a clear bull sign now. In the FX Trading Guide we have adopted a fresh bear stance now, particularly while key 0.9519/28 stays intact.

Receive three Market Updates fully-illustrated with charts each week for one month FREE

Next story:
Is there any value in short term interest rate futures

Previous story:
CRB Index in Position to Give Bull Signal Soon

< Back to menu

Financial Market Forecasting | Bonds Technical Trading Analysis | Commodity Specialist Guide | Daily Indices Guide | Technical Trading Guide UK |
Site Map | SEO Services | We're listed in the UK Business Directory