24 Apr 2014
EUR/GBP moves higher before The Draghi Effect
FXStreet (Moscow) - EUR/GBP is again on the rise reaching 0.8244 high by the moment on the German Ifo data.
Draghi may take the move under control
Now the market has no doubts the Germany can survive in appreciating euro environment coupled with rising geopolitical tension in Ukraine. German IFO number increased to 111.2, from 110.7 in March. Moreover, both the current assessment and the expectation component improved. The former increased to 115.3, from 115.2 in March, and came to its highest level since April, 2012. And the latter rebounded from the March decrease and reached 107.3, from 106.4. All of this supported the demand on the euro, triggering the pair move to initial resistance at 0.8253. However, with Draghi speech looming, the turnaround of the pair is not ruled out if he hints on negative impact of the appreciating currency on the economy.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8227, with support below at 0.8206, 0.8180 and 0.8159, with resistance above 0.8253, 0.8274, and 0.8300. Hourly Moving Averages are mixed, with the 200SMA at 0.8236 and the daily 20EMA bearish at 0.8255. Hourly RSI is bullish at 56.
Draghi may take the move under control
Now the market has no doubts the Germany can survive in appreciating euro environment coupled with rising geopolitical tension in Ukraine. German IFO number increased to 111.2, from 110.7 in March. Moreover, both the current assessment and the expectation component improved. The former increased to 115.3, from 115.2 in March, and came to its highest level since April, 2012. And the latter rebounded from the March decrease and reached 107.3, from 106.4. All of this supported the demand on the euro, triggering the pair move to initial resistance at 0.8253. However, with Draghi speech looming, the turnaround of the pair is not ruled out if he hints on negative impact of the appreciating currency on the economy.
What are today’s key EUR/GBP levels?
Today's central pivot point can be found at 0.8227, with support below at 0.8206, 0.8180 and 0.8159, with resistance above 0.8253, 0.8274, and 0.8300. Hourly Moving Averages are mixed, with the 200SMA at 0.8236 and the daily 20EMA bearish at 0.8255. Hourly RSI is bullish at 56.