Euro Aiming for New LowsIs the new wave of Euro weakness coming to the charts right now? Well, it seems so as the EURUSD is currently making new weakly lows.
Obviously part of the blame goes on the weaker than expected CPI but just the part, as this is the data from yesterday and the initial reaction wasn’t so catastrophic. Anyways, sell signal for the Euro is definitely supported by the technical situation and on that field we will operate in today’s analysis.
First, EURUSD, where the price is breaking the lower line of the pennant formation (black). In this case, pennant is a trend continuation pattern and should end with a decline. The target for this movement is on the lows from the 1st of August and chances that we will get there are very high.
Bearish setup can be also spotted on the EURCAD. We warned you about this occasion few days ago. In the long-term, the price bounced from two important resistances. In the short-term. EURCAD broke the crucial support and is now using it as a closest resistance. The contact with the resistance looks promising for the sellers as we are experiencing a bounce. Current market conditions are promoting a further drop.
Last instrument is the Bitcoin, which few days ago broke the mid-term up trendline but failed to break the horizontal support on the 9400 USD (blue). That was used for a bounce and the comeback above the dynamic support. With that reversal, the sentiment on the Bitcoin is positive. By the way, BTC is lately being transformed into a kind of a safe haven asset, which has a potential to protect us from the global recession. Interesting concept, we will see how it will work out in the future.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis