-EURGBP nears important April low
-EURCHF prepares for large advance
-EURCAD tests February low
-EURAUD drops beneath April low
Euro / British Pound
The decline from .9507 is an impulse and the next big move for the EURGBP is likely down. At this point, it appears that .9085 will remain intact. Coming below .8784 would open up the door for a move beneath .8634 (200 day SMA at .8600). .9024 should remain intact. Short term resistance is at .8885
Euro / Swiss Franc
The only Euro cross with a bullish structure. Perhaps this is indicative of the expected advance in equities over the next few weeks. A small 2nd or b wave may be complete at 1.5014. The next expected move is higher through 1.5450 (and possibly 1.5886).
Euro / Canadian Dollar
As I’ve mentioned for weeks, the EURCAD is expected to drop below 1.5633 in order to complete an A-B-C decline from 1.7522. Potential support in weeks ahead is 1.5260, which is the 100% extension of the decline from 1.6983. I’ll be looking for a bottom near there.
Euro / Australian Dollar
The EURAUD has dropped below the 200 day SMA, which brings forth the possibility that a longer term drop is underway. The next level of potential support is former resistance (from early 2008) at 1.7436. Favor weakness as long as price is below 1.8657. There is potential short term resistance at 1.8158 and 1.8286.
Euro / New Zealand Dollar
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 bullish channel. Price is right at the 200 day SMA (in red), so now is the moment of truth for bulls. While a rally is what I am looking for, a drop below 2.2413 may be required prior to resumption of the long term uptrend.
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
