Euro Crosses Could Turn Higher
-EURGBP in bullish channel
-EURCHF support from Fibonacci down to 1.49
-EURCAD remains bullish against 1.6378
-EURNZD Fibonacci support at current price
Euro / British Pound
Expectations are for the EURGBP advance to continue, and for the pair to eventually trade above .9807. Near term, a small 4th wave correction may be unfolding as a triangle. Price ideally remains above .9155. Coming under .9078 (February high), which is defended by the 55 day SMA and Elliott channel support, would suggest that a larger decline is underway.
Euro / Swiss Franc
For months, I’ve cited the 5 wave advance from 1.4296 to 1.5886 in the EURCHF as reason to be bullish. The larger advance has finally resumed and price is expected to eventually exceed 1.5886. Fibonacci support extends to 1.49 and the 55 day SMA at 1.4976 reinforces support in the Fibonacci zone.
Euro / Canadian Dollar
The long term trend for the EURCAD remains up. A corrective decline (a-b-c) from 1.7522 is likely complete at 1.5633 and the long term objective is above 2.0564 (which is where a corrective decline began in 1995). Near term, it is worth staying bullish as long as price is above 1.6378.
Euro / Australian Dollar
I still maintain that a triangle is underway from October 2008. Since triangles are continuation patterns, the probability is high that the break will be to the upside. However, price must remain above 1.8600 in order for the bullish triangle pattern to remain valid.
Euro / New Zealand Dollar
The long term trend is considered up as long as price is above 2.2480. Remember, the long term objective is above 2.6171 (all-time high). The reason for this target is that a triangle unfolded from that point. Near term, the EURNZD has declined from the top of a parallel channel. Staying above 2.2479 keeps the trend pointed up and there is potential support from Fibonacci at today’s low.
Jamie Saettele publishes Daily Technicals every weekday morning (930 am EST), COT analysis (published Monday mornings), technical analysis of currency crosses throughout the week (EUR on Tuesday, JPY on Wednesday, GBP on Thursday, AUD on Friday), and the DFX Trend Index every day after the NY close. He is also the author of Sentiment in the Forex Market.
Please send comments about this report to jsaettele@dailyfx.com
