- EUR/GPB is extending range trade below 100-DMA at 0.8956, bias neutral.
- The pair is holding above 5-DMA at 1.8915, break below could see minor weakness.
- Technical indicators are slightly bullish, RSI is flat, but holds above 50 levels.
- 5 and 20 day moving averages are biased higher and price action has broken into daily cloud.
- Upbeat PMI surveys coming out of the Euro-zone will offset concerns over the latest German political uncertainty and keep the Euro supported.
- Break at 100-DMA eyes major trendline resistance at 0.90 ahead of cloud top at 0.9026 and then 23.6% Fib at 0.9068.
- On the flipside, we see weakness on break below 20-DMA at 0.8883, scope then for test of 0.8730 (trendline).
Support levels - 0.8920 (38.2% Fib retrace of 0.8297 to 0.9306 rally), 0.8915 (5-DMA), 0.8883 (20-DMA), 0.8811 (Nov 10 low)
Resistance levels - 0.8956 (100-DMA), 0.90 (trendline), 0.9026 (cloud top), 0.9068 (23.6% Fib)
Recommendation: Go long on break above 100-DMA, SL: 0.89, TP: 0.90/ 0.9025/ 0.9070.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 73.1416 (Neutral), while Hourly GBP Spot Index was at -8.57056 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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