FX Technical Highlights:
- EUR/USD closing in on worst levels since 2017
- EUR/JPY looks fragile as it continues to drift lower
- AUD/USD testing important long-term support
EUR/USD dropped six consecutive days as of yesterday, and that in of itself isn’t a reason to neutralize a bearish outlook. However, support via the October 1 low and the way the Euro has been trading in this low-volatility environment is.
Watching price action closely as the 10879 level nears. It’s been an extended slide and the pattern has been for any extended move, up or down, to be unsustainable for any lengthy periods of time. With that in mind, traders who are currently short may want to button up trailing stops, those looking for a short, risk/reward isn’t particularly appealing here, and for those looking to take a counter-trend long, the time may be nearing with the right reaction.
Recommended by Paul Robinson
Check out the Q1 Euro Forecast.
EUR/USD Daily Chart (big lows coming up)
EUR/JPY is fell below a recent area of support after a fake-out blast higher on February 4th. With the longer-term trend lower and the recent break of the September trend-line, the general outlook favors lower prices. There might be a bounce in here or around the 11924 level, but overall without a sustained turnaround the general trading bias remains bearish.
EUR/JPY Daily Chart (could extend decline here)
AUD/USD is bouncing off the very bottom of support extending over from the late summer, early fall, right around the 6670 level, but it doesn’t look very sustainable. The anticipation is that the past day-and-a-half bounce will soon fail, taking Aussie below support. It might not be a high-momentum move, but it does keep the ball in the court of the shorts.
AUD/USD Daily Chart (sitting on big support)
For all the charts we looked at, check out the video above…
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—Written by Paul Robinson, Market Analyst
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