The euro dropped off drastically across the board, as dovish comments from Mario Draghi fuelled speculation for the possibility of the ECB cutting rates with the EUR/GBP closing the day almost 120 pips lower. At 0.8514 at the time of writing, it looks like the selling pressure has not abated on the single currency, with the pair entering a key support zone between 0.85 – 0.84. With the RSI turning down above its oversold area on the 30 min chart, we expect to see further downside in the short term. The downside penetration of 0.8505 would open the doors for 0.8475 and 0.844. In the alternative scenario, a breakout above 0.862 could bring the bulls back in the game, but this is hard to imagine at the moment. A smattering of economic data today comes in the form of US trade figures.

Dafni Serdari
Market Analyst
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