The explosive combination of EUR weakness and JPY strength due to risk aversion has offered an opportunity for the EURJPY bears to send prices to levels not seen since 2013 below 122.50 last month. This pair is heavily bearish and the growing expectations of further stimulus measures from the ECB on Thursday should limit how high prices can advance. From a technical standpoint, there have been consistently lower lows and lower highs while the MACD trades deep into the downside. Previous support around 125.50 may act as a dynamic resistance which should encourage another decline towards 122.00 and potentially lower. A bullish move back above 127.00 signals bearish weakness and invalidates this daily bearish outlook.
The heightened concerns over the unknown impacts of a Brexit to the UK economy have left the Sterling vulnerable, consequently encouraging bearish investors to attack the currency at any given opportunity. This can be reflected in the GBPAUD which is immensely bearish on the daily timeframe and shows signs of no visible bottom. There have been consistently lower lows and lower highs while the MACD trades deep into the downside. Prices are trading below both the 20 and 50 SMA with the next relevant support based at 1.85. As long as the new lower high of 1.96 defends, prices may continue to decline towards 1.89 and potentially lower.
The visible clash of weakness between the EUR and GBP has left the EURGBP ripped in various directions on the daily and weekly timeframe. Fears over the impact of a Brexit to the UK economy encouraged Sterling weakness which was the main driving force that ushered the pair to fresh highs at 0.7972 in February. Although this pair looks bullish in the bigger picture, the pending ECB press conference this week may leave prices open to explosive levels of volatility as anxious investors attempt to be on the right side of the move. From a technical standpoint, 0.7500 has acted as a superior support and this pair remains bullish as long as the level defends. A decisive breakout above 0.7800 should open a path towards 0.7950.
This pair has remained in a wide range for an extended period with resistance at 114.50 and support found at 111.00. Nevertheless, prices remain heavily bearish in the bigger picture and a strong breakdown below 111.00 should encourage a further decline towards 110.00. From a technical standpoint, the candlesticks are trading below both the 20 and 50 SMA while the MACD trades to the downside. As long as the 114.50 resistance defends, bears may be encouraged to drag prices towards 111.00 before the sharp decline back towards 110.00.
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