FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(EURUSD and AUDUSD) for the day
FxWirePro: EUR/GBP tests 21-EMA support, bias turns bearish
Chart - Courtesy Trading View
EUR/GBP was trading 0.48% lower on the day at 0.8568 at around 13:20 GMT.
The pair is slipping lower for the second straight session, dips below 21-EMA.
The shared currency stays under selling pressure after Fitch Ratings Agency's comments.
Fitch said in a report published on Thursday. "A technical recession in the eurozone is now an increasing possibility."
On the data front, seasonally-adjusted Unemployment Rate in the euro area declined to 6.6% in May from 6.7% in April, better than the market expectation of 6.8%.
Further, Germany's Retail Sales rose by 0.6% MoM in May versus 0.5% expected and -5.4% last.
On an annualized basis, the bloc’s Retail Sales came in at -3.6% in May, below -2.0% expected and -0.4% booked in April.
EUR/GBP is extending weakness below 21-EMA. Golden Cross on the daily charts is likely to keep downside limited.
The pair has slipped below 200H MA. Next major support aligns at 55-EMA at 0.8514. Bullish invalidation only below 200-DMA.