- EUR/GPB extends retreat from 4-month highs at 0.8957 hit on July 20th trade, slips for 4th straight session.
- The single currency sold-off ahead of German Ifo and all-important trade talks between the European Union (EU) President Juncker and the US President Trump.
- While Trump called for a free trade deal with the EU late-Tuesday, EU urges for Trump to suspend tariffs in order to get a trade deal.
- ECB policy decision due tomorrow is another major risk, with markets expecting a long period of inaction from the central bank.
- Markets also brace for further downside as German Ifo surveys are likely to disappoint.
- Momentum oscillators have rolled over from overbought levels and biased lower.
- Next immediate bear target lies at 21-EMA at 0.8864. Break below will see further weakness.
Support levels - 0.8864 (21-EMA), 0.8818 (200-DMA), 0.88
Resistance levels - 0.89, 0.8912 (5-DMA), 0.8963 (38.2% Fib)
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -52.3979 (Neutral), while Hourly GBP Spot Index was at 107.14 (Bullish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
