EUR/GBP: Moderate Growth
Mayzus | Mar 31, 2016 08:29AM ET
On Wednesday EUR/GBP managed to strengthen from Tuesday lows. The Euro was supported by strong macroeconomic statistics, released in Germany.
According to preliminary data for March, Consumer Price Index grew by 0.3% on a year-over-year basis, slightly exceeding the forecast. In monthly terms, the index was up to 0.8% from 0.4% while analysts expected a growth to 0.6%.
However, at the same time, EU data showed low consumer confidence (-9.7 points in March) and a fall in Economic Sentiment Indicator, which was down to 103.0 from 103.9 points against an expected decline only to 103.8 points.
Bollinger Bands® on the daily chart is trying to turn horizontally while the price range shows almost no changes. MACD is moving slightly up and keeping a sell signal. Stochastic has not reached the border of the oversold zone and tends to start growing.
The indicators recommend waiting for clearer trading signals.
- Support levels: 0.7872, 0.7847, 0.7830 (29 March low), 0.7773 (18 March low), 0.7733, 0.7690 0.7652 (10 March low).
- Resistance levels: 0.7910, 0.7946 (24 March high), 0.7976 (16 December 2014 level), 0.8000 (strong psychological level).
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