Daily Market Report – EUR/GBP Towards Another Downside Target November 01, 2017

EUR/GBP Trading In The Red

The currency pair plunges and seems unstoppable on the short term. Is trading in the red and resumes the bearish momentum. I’ve said in the previous reports that it should drop towards fresh new lows after several false breakouts above a major dynamic resistance level. The Cable appreciated also versus the Yen and versus the greenback not only against the Euro, it could climb much higher because has received a helping hand from the United Kingdom data today. The pair is pressuring a dynamic support right now, but it could ignore it.

The UK’s Manufacturing PMI increased from 56.0 to 56.3 points in October, even if the traders have expected to see a drop to 55.8, while the Nationwide HPI surged by 0.2%, matching expectations.

You can see on the Daily chart that the rate has failed to stabilize above the median line (ML) of the major ascending pitchfork, signaling an exhaustion. Price drops quickly on the short term and ignored the 100% Fibonacci level. Now us pressuring the third warning line (wl3) and could ignore this as well because is attracted by the lower median line (LML) of the major red ascending pitchfork.

EUR/CHF Is This A Rising Wedge? 

The EUR/CHF increased and resumed the last two increasing days, but looks like has found temporary resistance again. Price touched the first warning line (wl1) of the ascending pitchfork, which has paused the upside movement. Looks like that the price is developing a Rising Wedge pattern on the Daily chart, but this is far from being confirmed, only a valid breakdown below the upper median line (uml) of the ascending pitchfork will confirm a larger drop.

EUR/JPY Downside Paused Again

The EUR/JPY increased and resumed the yesterday’s bullish candle, it could come much higher to retest the sliding parallel line (SL) of te major ascending pitchfork. Technically, the rate it was expected to drop further after the breakdown from the Rising Wedge pattern. The near term downside target remains at the upper median line (UML) of the major ascending pitchfork.

By Olimpiu Tuns – Market Analyst