The euro shows a slight upward bias against the British pound on Monday, but keeps the broader downtrend intact. At the time of writing, the pair is trading in the 0.8665 area but is still unable to break away from the key support area at 0.8645.
Fundamentally, German retail sales exceeded expectations on Monday, but the impact on the euro was minimal. Attention now turns to final UK and Eurozone manufacturing PMIs, although risk-averse sentiment is likely to weaken both currencies and could support sideways consolidation in coming sessions.
Technical analysis: Large Head&Shoulders pattern at the neckline
Technically, the pair has been trading in a descending channel since its peak at 0.8865 in mid-November. However, the indicators on the 4-hour chart are mixed. The relative strength index (RSI) remains below 50, highlighting bearish momentum, but the moving average divergence (MACD) line has crossed above the signal line, suggesting that sellers may be losing momentum.
However, the price action remains dangerously close to 0.8645, the bottom of the January trading range and the neck line of a vast head and shoulders pattern, which is a bearish sign. The confirmation below would focus attention on the July 6 and August 13 lows at 0.8595.
On the other hand, Monday’s upside attempts remain narrow below the 0.8675 area, ahead of the January 28 high near 0.8700, and the January 21 high at 0.8745.
Price in euro today
The table below shows the current percentage change of the euro (EUR) against the main listed currencies. The euro was strongest against the Japanese yen.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.05% | 0.19% | 0.17% | 0.17% | 0.10% | 0.08% | |
| EUR | 0.05% | 0.00% | 0.22% | 0.22% | 0.21% | 0.14% | 0.12% | |
| GBP | 0.05% | -0.00% | 0.21% | 0.22% | 0.22% | 0.14% | 0.13% | |
| JPY | -0.19% | -0.22% | -0.21% | 0.00% | 0.00% | -0.06% | -0.08% | |
| BOOR | -0.17% | -0.22% | -0.22% | -0.01% | 0.00% | -0.07% | -0.09% | |
| AUD | -0.17% | -0.21% | -0.22% | -0.01% | -0.00% | -0.07% | -0.09% | |
| NZD | -0.10% | -0.14% | -0.14% | 0.06% | 0.07% | 0.07% | -0.02% | |
| CHF | -0.08% | -0.12% | -0.13% | 0.08% | 0.09% | 0.09% | 0.02% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select Euro from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
