Admiral Markets - Analytics

    Admiral Markets

    553.00 6.50/10
    83% of positive reviews

    Technical Overview - EURGBP, EURJPY, EURAUD and EURNZD

    Continuing with it descending trend, the Euro-zone common currency, Euro, weakened further against most major currencies. Investors now await for Thursday's ECB monetary policy decision announcement and subsequent press-conference, which might trigger some volatile move for the Euro-zone common currency, Euro. The key highlights, however, will be the most keenly watched economic indicator from the US, monthly jobs report, popularly known as Non-Farm payrolls data (NFP).

    ALSO READ: NFP And Central Bank Meetings to Dominate The Market

    Meanwhile, here is a technical update on important Euro pairs - EURGBP, EURJPY, EURAUD and EURNZD. 


    As could be seen on 4-hourly chart, the pair continues trading within a well-established short-term descending trend-channel. From current levels, the pair could possibly continue drifting lower to test the lower trend-line support of the channel, currently near 0.7205-0.7200 mark. Further, a decisive break below 0.7200 mark might now trigger a fresh leg of weakness for the pair, immediately towards testing 0.7060-50 support level. However, should the pair manage to hold Wednesday's low of 0.7235 and strengthen above 0.7270-80 immediate horizontal resistance, it could possibly witness some pull-back towards the upper trend-line resistance of the channel, currently near 0.7320-30 area. A decisive strength above 0.7300-20 resistance area would mark a break above the ascending channel, possibly negating short-term bearish outlook and triggering a short-covering rally initially towards 0.7400 mark and eventually towards a very important resistance near 0.7440-50 zone.


    The pair extended its slide from Feb. highs to retest 133.00 level, nearing 132.70-65 immediate support marked by the lower trend-line support of a short-term descending channel formation on 4-hourly chart. Failure to decisively move back above  137.00 mark resistance and a subsequent drop below a short-term descending channel now seems to confirm continuation of the short-term corrective move back towards 130.00 mark with intermediate support near 132.20 and 131.25 levels. Alternatively, should the pair continue holding above 133.00 mark and manage to clear 133.60-70 immediate horizontal resistance, it could possibly continue appreciating further towards testing the upper trend-line resistance of the descending channel, currently near 134.60-70 area. Further, a decisive move break above the descending channel now seems to pave way for an immediate retest another strong resistance near 136.00 mark.


    Following a decisive break below 200-day SMA, the pair on Wednesday dropped back to 1.4200 mark and now seems to continue with the downward trajectory towards a short-term ascending trend-line support near 1.4100-1.4070 region. Moreover, a break below the ascending trend-line support seems to increase the pair's vulnerability to continue dropping further, even below 1.4000 mark, towards 1.3800 support area, marked by lows tested in 2014. Meanwhile on the upside, immediate resistance is pegged near 1.4250, which is followed by a strong resistance near 1.4350 area. A move above 1.4350 has the potential to lift the pair back towards testing 200-day SMA resistance, currently near 1.4470-80 area.


    Extending its break below a medium-term descending trend-channel, extending from July-August 2013, the pair on Wednesday decisively dropped below 61.8% Fib. expansion level. The pair now seems vulnerable to continue its downward trajectory in the near-term to test 100% Fib. expansion level support near 1.4150-40 area. Since the pair has now dropped to all time low levels, it could be assumed that 1.4500 psychological round figure mark could provide some intermediate support on the downside. On the upside, 61.8% Fib. expansion level support break point near 1.4780-1.4800 area now becomes immediate resistance to watch-for and now seems to cap any near-term rebound for the pair.


    Haresh Menghani
    Senior Market Analyst
    Admiral Markets
    At any use of the analytical material taken from the site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», reference to the company site is obligatory.

    Follow me on twitter @Fx_Haresh for latest market updates

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree