Key Points
- The Euro is struggling to gain momentum against the British Pound and remains below 0.8650.
- The EURGBP pair is well supported on the downside near 0.8625 and a bullish trend line on the hourly chart.
- The Euro Zone Economic Confidence for March 2017 was released by the European Commission today.
- The result was a bit lower, as it posted a decline from the last reading of 108.0 to 107.9 in March 2017.
EURGBP Technical Analysis
The Euro made a downside move towards 0.8600 against the British Pound recently and traded as low as 0.8623 where it found bids. A bullish trend line on the hourly chart with support at 0.8625 prevented declines and pushed the EURGBP pair higher.
The pair moved higher above the 23.6% Fib retracement level of the last decline from the 0.8735 high to 0.8623 low, but failed to break the 21 hourly simple moving average.
The pair is once again struggling, and it looks like it might trade back towards 0.8625 to test the same bullish trend line. Let’s see if it can hold it this time or not. A break could push EURGBP towards 0.8600.
Euro Zone Economic Confidence
Today, the Euro Zone Economic Confidence for March 2017 was released by the European Commission. The market was expecting the Euro Zone Economic Confidence to increase from the last reading of 108.0 to 108.2 in March 2017.
The outcome was lower than the forecast, as it posted a decline from the last reading of 108.0 to 107.9 in March 2017. Similarly, the Euro Zone Industrial Confidence was forecasted to increase from the last reading of 1.3 to 1.4 in March 2017, but posted a decline to 1.2.
Overall, the Euro might remain under pressure, and could even challenge the trend line support at 0.8625 once again.
