ForexTime - Analytics

ForexTime

792.25 5.75/10
76% of positive reviews
Real

EURGBP and EURUSD beginning to attempt a move lower?

EURGBP and EURUSD beginning to attempt a move lower?

The final trading day of April is seeing investors take profit from stock market positions that have suprisingly noted advances in major indexes throughout the month. One of the trends that the risk-off mood is bringing to trader sentiment, is a weaker Euro senitment and this is something that has not been helped from another horrifying economic release today. Data showed that the Eurozone economy shrank at the sharpest pace on record during the first quarter with an estimate between January-March showing a contraction in economic activity of 3.8%.

 

ECB President Largade has also made depressing headlines while the European Central Bank left policy unchanged with a warning that the EU economy could shrink by as much as 12% this year.

As a result of the weak Euro sentiment, we have seen some drops today in both the EURGBP and EURUSD.

ecb left policy unchanged

(EURGBP Daily Chart FXTM MT4)

Should the sentiment for the Euro remain weak while the GBP maintains a more stable footing, further declines in EURGBP can be possible. Should the pair decline below 0.8669, potential areas of interest can become the 5 March low at 0.8620 and even potentially the 2 March low at 0.8593.

The EURUSD is also showing some indications of a move lower ahead, although the current indifferent sentiment that traders are showing towards the USD might prevent volatility in the EURUSD. The pair is trading around 1.0862 at the moment, and I would prefer to see a move below 1.0832 and even the April 29 low at 1.0817 to open up the possibility that the Eurodollar can potentially decline even further than 1.08 as May begins. However and with the USD remaining fragile, one can not dismiss the prospects of an unexpected move higher in the EURUSD closer to 1.09. 

eurusd shows some indicatations of a move lower ahead

(EURUSD Daily Chart FXTM MT4)

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


To leave a comment you must or Join us


By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree