Key Points
- The Euro recovered well against the British Pound after trading below the 0.8500 level.
- There is a bearish trend line formed on the hourly chart of the EURGBP pair, which is protecting gains.
- In the Euro Zone today, the Italian Consumer Confidence released by the Istat posted a decline from the last revised reading of 111.2 to 109.2 in August 2016.
- The Italian Business Confidence also posted a decline from the last revised reading of 102.9 to 101.1 in August 2016.
EURGBP Technical Analysis
The Euro recently managed to recover from the 0.8486 low versus the British Pound. However, the upside was limited due to a bearish trend line formed on the hourly chart of the EURGBP pair.
Moreover, the pair is also facing offers near the 21 hourly simple moving average, which is just below the trend line resistance.
So, one may consider selling around the trend line and the 21 hourly SMA as long as the pair is below it.
Italian Consumer Confidence
Today in the Euro Zone, Italy saw a couple of economic releases. The Consumer Confidence, which is a survey of the consumer opinions in Italy and indicates the performance of the overall economy in a short-term view was released by the Istat.
The market was expecting a decline in August, and the outcome was even worse. There was a decrease from the last revised reading of 111.2 to 109.2 in August 2016. The report stated that “With regard to the consumer survey, the confidence climate index decreased in August 2016 from 111.2 to 109.2. All components decreased: economic from 129.8 to 125.5, personal from 105.0 to 103.6, current from 109.1 to 107.2 and the future component from 114.8 to 112.2. The balance concerning expectations on unemployment grew from 30 to 35. The balance on inflation perceptions referring to the last 12 months and on inflation expectations for next 12 months rose from -31 to -22 and from -30 to -27 respectively.”
Overall, the Euro may continue to face offers in the near term as long as it is below the trend line resistance.
