The spotlight event in Eurozone this week is today’s economic growth forecasts which will be released from the European Commission and may have a strong impact on the euro. The single currency posted a bullish day against the sterling following the bounce off the 50.0% Fibonacci retracement level with low at 0.8310 and high at 0.9306. The EUR/GBP pair struggles within the 200-day SMA and the 50-day SMA and awaits a significant event to drive the price sharply higher or lower.
The next support level to watch to the downside is the 0.8740 barrier and the upside the 38.2% Fibo level. Technically, on the daily timeframe, the indicators are holding below their mid-levels. The RSI indicator is holding to the downside, whilst the MACD oscillator posted a bullish crossover with its trigger line.
