Price has been following a text book sell off on a touch of the 5 day EMA
. We have a large trend line
support coming into play and also a 2015 horizontal zone of support. Techincal traders may be looking at the Bat pattern
nearing completion and a reversal in price around, I believe, the 177 mark. However fundamental analysis
may determine a break of these support zones and patterns due to:
1. Poor economic data from the UK.
2. No rate hike on the table anymore for the UK incl dovish statements from the BoE.
3. Money flowing into JPY safe haven status due to:
a) Falling commodity prices
b) Lack of stability and bounce not in sight for stock markets.
c) Uncertainty surrounding Chinas economic growth and stability.