Three great Occasions with EuroToday, three setups with the Euro. Two of them are bearish and one of them is bullish…at least for now.
Euro is having some problems recently and current decline may be actually just a beginning.
First setup will be this positive one, found on the EURCHF. Here, we do have an inverse head and shoulders pattern, which is a part of the bigger double bottom formation. The buy signal was triggered, when the price broke the mid-term down trendline (black). That signal was additionally strengthened by the price breaking the neckline at the end of January. Currently, the broken resistance is tested as a support, which in theory is a good occasion to buy. Just in theory though as the bearish momentum is quite big and the overall sentiment for the Euro is not encouraging.
Next setup is clean and simple. Yesterday, EURGBP broke the lower line of the wedge pattern (blue). Wedge is a trend continuation pattern and the main trend is bearish, that is why, our outlook is negative. The potential target is on the green support around the 0.864
The last one is the EURJPY, where we also do have a sell signal. The price bounces from the major long—term resistance and broke the support of the local correction. Target here is on the lows from the flash crash that happened at the very beginning of the year.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis