This article is originally referred from TitanFX Forex News.
- The Euro after trading as high as 0.8820 against the British Pound struggled and started correcting lower.
- There is a major contracting triangle pattern formed on the 4-hours chart of the EURGBP pair, which may act as a catalyst for the next move.
- Today in the Euro Zone, the preliminary Manufacturing Purchasing Managers Index (PMI) reading will be released by the Markit Economics.
- The market is aligned for a decline from the last reading of 52.8 to 52.0 in July 2016.
EURGBP TECHNICAL ANALYSIS
The Euro after a solid rise against the British Pound towards the 0.8620 level against the British Pound failed to retain the bullish bias and started a correction. Let us see whether the EURGBP pair can move higher once again or not.
As mentioned, there is a major contracting triangle pattern formed on the 4-hours chart of the EURGBP pair. The highlighted pattern may play a crucial role in the next move in the short term.
A break below the triangle support trend line could ignite a move towards the 200 simple moving average (4-hours).
EURO ZONE MANUFACTURING PMI
Today in the Euro Zone, there are a few major releases. First the German preliminary Manufacturing Purchasing Managers Index (PMI) reading will be released by the Markit Economics, then the Euro Zone. The German Manufacturing PMI is forecasted to decline from 54.5 to 53.5, and the Euro Zone from 52.8 to 52.0 in July 2016.
Moreover, the Euro Zone PMI service, which is an indicator of the economic situation in the Euro Zone services sector will also be reported. It is forecasted to decline from 52.8 to 52.5 in July 2016 (preliminary).
All these events have a potential to impact the Euro against it peers in the short term.
JAPANESE SECURITIES INVESTMENT
Earlier today during the Asian session, the Japanese Securities investment, which referrers to bonds issued in a domestic market by a foreign entity in the domestic market’s currency was released by Ministry of Finance.
The outcome was mixed, as it came in at ¥1,718.1B, compared with the last revised reading of ¥2,549.7B.
Overall, the market sentiment is favoring safe havens at the moment, and today’s economic releases may impact it in the near term.
Original Source: TitanFX Forex News