Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5977
    -0.0029 (-0.48%)
     
  • NZD/EUR

    0.5537
    -0.0006 (-0.11%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    82.98
    +1.63 (+2.00%)
     
  • GOLD

    2,241.10
    +28.40 (+1.28%)
     
  • NASDAQ

    18,248.15
    -32.69 (-0.18%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,796.30
    +36.22 (+0.09%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.4030
    -0.3770 (-0.42%)
     

EUR/GBP noisy to begin the week

The EUR/GBP pair has been very choppy during the trading session on Monday, showing signs of indecision yet again. The market will of course have a lot of things to pay attention to, not the least of which would be negotiations between the EU and the UK.

The EUR/GBP pair has been very noisy over the last couple of sessions, as we continue to bounce around the 0.8650 level, and the 0.87 level above is massive resistance. I think that is essentially the “ceiling”, and I think it’s not until we get above there that I would be comfortable buying. After all, we have recently broken down below that level, which was once massive support. Now that we are below it, the resistance should be rather stringent there as well. I think regardless of what happens, it’s going to be very noisy, so I think that we will probably be best using some type of range bound system and perhaps small position size to take advantage of this little area that we have been trading in. Longer-term, I suspect that we are going to go lower, perhaps down to the 0.86 handle after that. A breakdown below there could open the door to the 0.85, but the 0.86 level has been important on longer-term charts, so I suspect that it will take a bit of effort to break down through it.

Alternately, if we broke above the 0.87 handle, I think it’s likely that we would try to go to the 0.8725 handle, and then if we can break above there I think that the market should continue to go to the 0.88 level after that, which has been important more than once. While a bit of caution is advised, I think those who are nimble could benefit from this market.

EUR/GBP Video 16.04.18

This article was originally posted on FX Empire

More From FXEMPIRE: