Europe has come to the forefront of the investor mindset over the past week, with concerns around the economic outlook thanks to the recent deterioration of their respective PMI surveys. With a number of economic warning signs coming to the fore, we are seeing markets adjust pricing around the forthcoming interest rate decisions. This should ensure that we see plenty of volatility around any economic data point, with further signs of economic distress likely to hurt that currency. Given the fact that both the UK and eurozone are in a similar position, we look likely to see the pair decline thanks to the elevated nature of UK inflation which limits the chances of a rate freeze.
The daily chart highlights how price has started to reverse in line with the bearish trend that has dominated the past seven months. With trendline and Fibonacci resistance coming into play here, a bearish outlook holds. A rise through the 61.8% Fibonacci resistance level (0.861) would be required to signal a more protracted rebound. Until then, the bears look likely to dominate in a bid to drive the pair towards the lows of 0.85.
The daily chart highlights how price has started to reverse in line with the bearish trend that has dominated the past seven months. With trendline and Fibonacci resistance coming into play here, a bearish outlook holds. A rise through the 61.8% Fibonacci resistance level (0.861) would be required to signal a more protracted rebound. Until then, the bears look likely to dominate in a bid to drive the pair towards the lows of 0.85.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.