The Euro dropped early on Wednesday, as we are looking at this pair via the interest rate differential. I am interested in selling soon if we see momentum.
Top Regulated Brokers
EUR/GBP
The Euro dropped slightly during the trading session here on Wednesday as market participants continue to see a little bit of choppiness, and as we have bounced so significantly to the upside over the last several days, it's not a huge surprise to see a little bit of hesitation here. The 50-day EMA is sitting just above, and that could cause a certain amount of technical resistance. If we do pull back from here and start falling again, I am more than willing to jump in and start shorting because it does go with the longer-term downtrend.
Fibonacci retracement traders will look at this through the prism of struggling a bit right at the 50% Fibonacci retracement level. The market could go looking to the 0.85 level, as that is the next large, round, psychologically significant figure underneath. If we turn around and break above the 0.86 level, basically blowing through the 61.8% Fibonacci retracement, then I think we could test the 200-day EMA. At that point, I would probably step away from this pair, but as things stand right now, shorting does pay you, and the market is offering a little bit of value.
Watching for Momentum Near Key Resistance
We'll just have to see if this really plays out. I want to see a little bit more momentum before I start selling, but this is a pair I'm watching very closely. When you look at longer-term charts, you can see that we had shot straight up in the air at one point during 2025. We went sideways for a while, formed some type of complex head and shoulders, I guess. Now we're getting fairly close to retesting that previous support. This is a very interesting place for me, and I'll be watching this pair very closely over the next several days.
Potential signal: I am selling at 0.8550 with a stop at 0.8610 and a target of 0.8475.