 Good morning and welcome to the chart of the week video with me. David Madden today's date is Thursday the 23rd of July 2020 and the time has just gone 1150 British summer time and this week's chart of the week is Euro sterling and As we can see here from the upward trend from this nice upward this chart here Daily chart we can see there's been in a nice upward trend for the last number of months in fact last month In late June it is highest level Since March it's come off of it since But but we have been pushing higher yet again And this video is going to discuss potential price points to keep an eye out for in the medium In the short to medium term So the wider upward trend Is it remains intact and and so if we do press on higher from here We can look at retesting the highs of late June And that comes into play at zero spot 91 75 And should we take off that area? We could then be testing up towards this zone here in around zero spot 92 up towards zero spot 92 39 And if you go beyond that we could be looking at having a potentially up towards the 94 area If you do move to the downside Work we potentially find support from we could find some support from this blue line here the fifth Daily movie average and that comes into play at zero spot 89 69 So 80 zero spot 89 96 and we can see that this metric Only only a few days ago and also last Last week and also back in mid-May acted nicely as support and if a metric is acted Nicely as support of the past and makes it more likely it'll be Active support in the future, but obviously there are no guarantees So that's something something to keep an eye on and even if you do drop below the 50 moving average Support could be found from this yellow line here at the 100 a moving average And that comes into play at zero spot 89 26 Or we can see here that When the market had a an aggressive sell-off into uh in april into going to may the market didn't quite get down there But but it was going to got close enough to 100 a moving average But we can notice back in february in late february that metric actually has both Support resistance and then also support. Um, so if the metric once again has been important in the past It could be of importance in the future and even if you drop below that We could head back down towards this zone here down on zero spot 88 now if you aren't going to be trading euro starting today or any of the Euro euro and and or and starting crosses keep in mind that today is the last day of planned EU-UK negotiations in relation to what the UK's Post-transition period relationship with the european union is going to look like not to say that or the talks couldn't be announced But today is the final day for planned talks So we're always seeing a bit of a bit of pressure in the pound hence why we're seeing the the the euro continue in its upward trend because The traders are kind of anytime. There's been a kind of uncertainty of the UK winding up in a no-deal scenario. That is typically Pop pressure on the pound and therefore has pushed the euro higher I also want to talk about Is how the euro is fair against other currencies and how the pound is fair against other currencies because One of the things I like to look at is doll theory What doll theory basically says is that the averages must confirm each other what that essentially means Is if you're looking at a certain market for example euro sterling and you see it's an upward trend You're you're seeing that the pound The euro is gaining against the British pound But you also want to see is that true across other markets? Here is euro dollar euro dollar. Is it a nice upward trend? We're just we're not too far away from the one spot 16 mark Yesterday we traded above one spot 16. That was euro euro dollars highest level Since october 2018. So given the occasion of how strong euro dollar is So we're seeing the euro again it gained against the British pound But we're also seeing the euro gain against the US dollar. So it seems fairly clear that there's a broad Move to the upside in the in the euro. So therefore you can be more confident that the um The euro sterling is going to push higher, but obviously there are no guarantees This here is the pound sterling now And we can see in the last couple of sessions only on the only in tuesday pound dollar hit its highest level In over a month. So there is a bit of strength in the British pound But we can see if you look at the candles on the last couple of days The long wick on this candle the narrow body in this candle You know, it seems to me there's not indecision tied up with with the with pound dollar at the moment So if you know if you add it together we can see that the euro is gaining ground against the the British pound The euro is certainly gaining ground against the um The US dollar and euro sterling. I'm sorry and pound sterling seems to be a bit indecision. So We can say we can be more confident that this upward trend in euro sterling is going to continue But obviously there are no guarantees Thank you for listening. Um, stay safe. Have a good trading week and good luck