EUR/CHF, EUR/JPY and EUR/GBP Forecast – Euro Showing Mixed Results

EUR/CHF Technical Analysis

The Euro has dropped pretty significantly against the Swiss Franc, and this is a pair that you need to pay close attention to because this market is going to be a potentially explosive one as the Swiss National Bank will be watching the 0.91 level as it offered a bit of a floor.

If we break down below there, you will have to ask questions whether or not the Swiss National Bank gets involved. After all, the Swiss National Bank has stated several times that they are worried about FX moves and this is their biggest pair to watch. 85% of Swiss exports end up in the European Union, so although this is very bearish, I would be very careful here. Any type of bounce could offer an opportunity and intervention almost certainly will.

EUR/JPY Technical Analysis

The Euro against the Japanese Yen has found support at the 181 Yen level and we are turning around to form a bit of a hammer. We have broken a trendline, but the great thing about trendlines is you can just draw them somewhere else later. So I wouldn’t worry so much about that.

If we can hold above 181 Yen, it is very possible that we could go looking to the 186 Yen level. This is a market that I think eventually gets there. The carry will help, as you, of course, get paid to hang on to the long side. If we break down below 180 Yen, then I step back and I let it fall.

EUR/GBP Technical Analysis

The Euro is slightly negative against the British Pound during the trading session, although very slightly so, and we are hanging around the 50-day EMA. In this pair, I am watching the 0.8750 level as a potential ceiling. If we break above there, then the market could go to the 0.88 level.

A fall from here could open up a move down to the 200-day EMA. Right now, this is a pair that shows balance between the Euro and the Pound, and you can take this information and apply it to other currency pairs with the Euro and the Pound in them. For example, you can take the Euro against the US Dollar, the Pound against the US Dollar, and recognize that essentially they are fairly neutral, so one should move in tandem and perhaps a similar distance as the other.

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