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3 Apr 2014
EUR/GBP makes weekly high as Draghi speaks
With EUR/GBP making a daily high and low at 0.8316 and 0.8259 respectively, spot is currently trading at 0.8292, up 0.14% on the day so far
EUR/GBP climbs on GBP weakness
With Cable weakening today following soft Services PMI numbers and UK Chancellor Osborne’s testimony to the Treasury Select Committee, EUR/GBP benefited throughout the European session, climbing to post a weekly, and April high so far at 0.8315. The pair found overnight and early morning support, around 0.8263, on the uptrend line dating back to the March 28 low at 0.8247. EUR had been quite neutral in the build up to Draghi’s speech, so the momentum looks to have been driven by GBP weakness.
With the ECB deciding to hold rates at 0.25%, focus has naturally fallen on the subsequent Draghi Policy statement and press conference. So far he has commented that a prolonged period of low inflation can be seen, with subdued price pressures seen over the medium term, and all instruments of monetary policy will be considered. He added that he does not exclude further monetary easing and the governing council was unanimous in its willingness to use unconventional measures. Additionally, Draghi sees Geopolitical risks ahead, and will monitor the subsequent exchange rate risk.
EUR/GBP technicals
According to hourly FXStreet proprietary tools the OB/OS Index and Trend Index, the pair is overbought and slightly bullish respectively. Currently RSI is at 73.27, up from the last hourly print at 64.77, with ADX at 27.77, up from its previous close at 25.04. Meanwhile, daily RSI is in neutral territory at 45.90. The 200 SMA is currently at 0.8286, down from 0.8307 at the last period close, and declining on the hourly EUR/GBP chart. Moving with a rangebound trend, the exponential average closing price is 0.8308. The hourly EUR/GBP chart is showing the 2-Standard Deviation Volatility Bandwidth is at 37 pips and expanding, while the ATR (14) is currently at 7 pips. 2-Standard Deviation Volatility Bandwidth is at 169 pips and shrinking on a daily chart.
EUR/GBP Levels
Current price is 0.8294, with resistance ahead at 0.8295 (Weekly High), 0.8302 (Weekly Classic PP), 0.8305 (Daily Classic R1), 0.8307 (Hourly 200 SMA) and 0.8308 (Daily 20 SMA). Support below can be found at 0.8287 (Daily Classic PP), 0.8281 (Daily Open), 0.8280 (Hourly 20 EMA), 0.8277 (Hourly 100 SMA) and 0.8270 (Yesterday's Low).
EUR/GBP climbs on GBP weakness
With Cable weakening today following soft Services PMI numbers and UK Chancellor Osborne’s testimony to the Treasury Select Committee, EUR/GBP benefited throughout the European session, climbing to post a weekly, and April high so far at 0.8315. The pair found overnight and early morning support, around 0.8263, on the uptrend line dating back to the March 28 low at 0.8247. EUR had been quite neutral in the build up to Draghi’s speech, so the momentum looks to have been driven by GBP weakness.
With the ECB deciding to hold rates at 0.25%, focus has naturally fallen on the subsequent Draghi Policy statement and press conference. So far he has commented that a prolonged period of low inflation can be seen, with subdued price pressures seen over the medium term, and all instruments of monetary policy will be considered. He added that he does not exclude further monetary easing and the governing council was unanimous in its willingness to use unconventional measures. Additionally, Draghi sees Geopolitical risks ahead, and will monitor the subsequent exchange rate risk.
EUR/GBP technicals
According to hourly FXStreet proprietary tools the OB/OS Index and Trend Index, the pair is overbought and slightly bullish respectively. Currently RSI is at 73.27, up from the last hourly print at 64.77, with ADX at 27.77, up from its previous close at 25.04. Meanwhile, daily RSI is in neutral territory at 45.90. The 200 SMA is currently at 0.8286, down from 0.8307 at the last period close, and declining on the hourly EUR/GBP chart. Moving with a rangebound trend, the exponential average closing price is 0.8308. The hourly EUR/GBP chart is showing the 2-Standard Deviation Volatility Bandwidth is at 37 pips and expanding, while the ATR (14) is currently at 7 pips. 2-Standard Deviation Volatility Bandwidth is at 169 pips and shrinking on a daily chart.
EUR/GBP Levels
Current price is 0.8294, with resistance ahead at 0.8295 (Weekly High), 0.8302 (Weekly Classic PP), 0.8305 (Daily Classic R1), 0.8307 (Hourly 200 SMA) and 0.8308 (Daily 20 SMA). Support below can be found at 0.8287 (Daily Classic PP), 0.8281 (Daily Open), 0.8280 (Hourly 20 EMA), 0.8277 (Hourly 100 SMA) and 0.8270 (Yesterday's Low).