EUR/USD is showing signs of failure at the 78.6% Fibonacci retracement at 1.4732, and has eroded its near term uptrend. Short term risk has shifted to the downside and we look for a break below cloud support at 1.4295 to trigger another slide to the 1.4007/1.3968 support, which represents recent low and 200 week ma.
EUR/JPY’s outlook is neutral. The market is sidelined within the converging trendlines of 116.06 and 118.32. The market continues to find good resistance offered by the 55 day moving average at 117.88. Failure at the 116.06 uptrend, would once again imply a revisit to the 200 day moving average at 113.61, where the currency pair is expected to stabilise. With the 55 WEEK ma at 112.97 and the 50% retracement also here at 112.93, we would again expect this to hold.
Not only did EUR/GBP recently fail to close above the 78.6% Fibonacci retracement of the May decline at .8950 but it also charted a key reversal day. Near term risk has shifted firmly to the downside.
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Technical Research