-EURGBP targets .95, then .98
-EURCAD short term target at 1.70
-EURAUD in tight range
Euro / British Pound
Expectations are for the EURGBP advance to continue, eventually trading above .9807. Shorter term, a bullish objective is at .9461 (161.8% extension of .8634-.9078/.8724). Only a drop below .9016 would begin to suggest that a top is in place.
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. Near term weakness over a few weeks is certainly a possibility given strength of the recent rally. Former resistance at 1.52 is potential support.
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 1.6319 in order to catch 5 waves up from 1.5633. An area to watch for resistance and a short term target area is 1.70.
Euro / Australian Dollar
The triangle that began in October 2008 may be complete in the EURAUD at 1.9010. The trend since late 2007 has been up in the EURAUD and since triangles are continuation patterns, the probability is high that the break will be to the upside.
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 2.3699.
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
