1. EURJPY
2. EURCHF
3. EURGBP
EURJPY EUR/JPY continues to move higher in a choppy fashion. Bearish divergence with oscillators on the daily suggests that we are on the verge of a decline. Price is nearing a short term supporting trendline (from 7/10 low at 145.01). The trendline sits just above the 147.00 figure and a break below it could mark the beginning of a bigger turn. Initial resistance is at the 7/20 and 7/21 highs at 147.85/86. For more in EUR/JPY, please see http://www.dailyfx.com/story/special_report/special_reports/Euro_Bears___It_May_be_Time_1152747631957.html
EURCHF EUR/CHF has rallied past the last 3 days highs and is nearing the 78.6% fibo of 1.5853-1.5447 at 1.5766. Bearish divergence with oscillators on both the daily and hourly charts suggests at least a correction of recent strength. Initial support comes in at the 7/20 high of 1.5722. A break below there would target the 7/21 low at 1.5684. Continued strength probes the mentioned fibo at 1.5766.
EURGBP EUR/GBP is down for the 8th day in a row and is currently testing the 6/19 low at .6810. Additional support is just below at the 78.6% fibo of .6752-.6958 at .6796. Bullish divergence with oscillators on the hourly point to a potential turn higher at current support levels. A symmetrical triangle has been forming since May 2003 and the supporting trendline from the triangle is at about .6765. EUR/GBP is currently tracing out its 5th wave within the triangle, suggesting that the long term consolidation is nearing completion. RSI on the daily is close to oversold. Historically, the pair has turned right as RSI has hit 30 and 70 (circled below on chart).
Glossary of Terms
CCI(20) 20 day Commodity Channel Index
andgt; 0 bullish
0 andgt; bearish
andgt; 100 extremely bullish
-100 andgt; - extremely bearish
RSI(14) 14 day Relative Strength Index
andgt; 50 bullish
50 andgt; bearish
andgt; 70 overbought
30 andgt; - oversold
MACD ? - MACD slope (MACD MACD[1])
andgt; 0 bullish
0 andgt; - bearish
Mom(8) 8 day Momentum (shorter-term direction)
andgt; 0 bullish
0 andgt; - bearish
ATR(14) 14 day Average True Range (volatility)
Medium 75th percentile* andgt; ATR(14) andgt; 25th percentile*
High - andgt; 75th percentile*
Low 25th percentile* andgt;
ADX(14) 14 day Average Directional Index (directional strength)
andgt; 30 strong
30 andgt; - weak
*measured against past 3 months
