FxWirePro Currency Strength Index for EUR/GBP: Bias Bullish
FxWirePro's Hourly EUR Spot Index was at 106.544 (Bullish)
FxWirePro's Hourly GBP Spot Index was at -113.189 (Bearish)
Technical Analysis: Bias Bullish
- RSI biased higher
- Stocks on the verge of rollover from oversold levels
- +ve DMI on verge of a crossover on -ve DMI
- Price has broken above 5-DMA
Fundamental Factors:
- Sterling plummets post inflation data miss, pushing EUR/GBP above 0.87 handle
- Data released earlier today showed UK’s consumer prices came weaker at 2.5% in March, down from 2.7% booked in February and against 2.7% anticipated.
- On a monthly basis, prices rose 0.1%, less than the initially forecasted 0.3% gain and compared to a reading of 0.4% last month.
- Eurozone final CPI data was mixed. Eurozone consumer prices came in at 1.3% y/y, a tad softer than the flash estimate.
- While on a monthly basis, the bloc’s CPI figure for March accelerated to 1.0% versus 0.2% previous.
- EZ core CPI numbers rose in line with the flash readings at 1.4% and compared to 0.4% last.
Support levels - 0.8665 (5-DMA), 0.8620 (April 17 low), 0.86, 0.8580 (trendline)
Resistance levels - 0.8723 (21-EMA), 0.88 (50-DMA), 0.8812 (100-DMA)
Recommendation: Good to go long on breakout above 21-EMA, SL: 0.8665, TP: 0.8740/ 0.88/ 0.8815
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