Key Points
- The Euro surged higher this week and settled above the 0.8900 handle against the British Pound.
- There is a connecting bullish trend line forming with support at 0.8900 on the hourly chart of EURGBP.
- Today in the Euro Zone, the Consumer Confidence for July 2017 (Prelim) was released by the European Commission.
- The outcome was below the forecast, as the index posted a decline from -1.3 to -1.7.
EURGBP Technical Analysis
The Euro climbed higher this week and broke a few important resistances such as the 0.8900 handle against the British Pound. The EURGBP pair is well above the 21 hourly simple moving average and recently traded as high as 0.8975.
On the downside, there is connecting bullish trend line forming with support at 0.8900 on the hourly chart which is positioned with the 21 hourly simple moving average.
An initial support is around the 23.6% Fib retracement level of the last wave from the 0.8833 low to 0.8975 high. The most important support is near the trend line as it is also the 50% Fib retracement level of the last wave from the 0.8833 low to 0.8975 high.
Euro Zone Consumer Confidence
Today in the Euro Zone, the Consumer Confidence for July 2017 (Prelim) was released by the European Commission. The market was positioned for a decline from the last reading of -1.3 to -1.1.
The actual result was below the forecast, as the index posted a decline from -1.3 to -1.7. The report added that:
In July 2017, the DG ECFIN flash estimate of the consumer confidence indicator remained broadly flat in the EU (-0.1 points to -2.3) and decreased slightly in the euro area (-0.4 points to -1.7) compared to June.
Overall, the EURGBP pair remains supported on the downside around the buy zones such as 0.8940 and 0.8920.
