EUR/GBP Signal Today - 25/06: Euro Eyes Recovery (Chart)
Date
6/25/2024 2:53:52 PM
(MENAFN- Daily Forex) Potential signal:
If we were to get a daily close above the 0.85 level, I would have a stop loss at the 0.8450 level, with a target of 0.86. At that point in time, I might even let the market run a little higher and leave my trade on in order to get to the 0.8650 level, but that is something to be determined by momentum if we get to that area.
The euro has rallied a bit during the course of the trading session on Monday, as we continue to see it trying to recover against the British pound. The British pound of course has been very strong as of late, and recently we have the European Central Bank cut rates. Furthermore, we also had the surprise of a snap election being held in France, which caused a bit of a deep selloff in the euro overall.
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Since then, people have come to the realization that the European Union is not going to magically disappear just because a few members in Parliament may change. With that being the case, I think you are starting to find value hunters pushing this market higher, but I also recognize that we have a major barrier above that will have to be paid close attention to. The 0.85 level for me is one of the most important parts on this chart Analysis
The technical analysis for the market is rather negative, but I also recognize that when you look at the longer-term charts, the area that we are currently in right now is an area that had been massively supportive previously. Because of this, I do think that longer-term traders or at least traders that are paying attention to the longer-term charts, are jumping in and getting involved.
If we can break above the 0.85 level, where the 50-Day EMA currently resides, then I think the market can truly take off to the upside, perhaps going to the 0.86 level. I recognize that it would take a significant amount of momentum to make that happen, but it certainly looks as if we are trying to do everything, we can to make a move in that general direction. As things stand right now, it looks like the 0.84 level has offered massive support, as we have not only bounced from there recently, but we have also seen that area offer a massive amount of support on longer-term charts going back multiple years.
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