Technical Technical Technical

Technical Update - EUR under pressure across the board. Pairs testing or breaking key levels

Forex 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Technical picture and levels in this article: EURAUD, EURCAD, EURCHF, EURGBP and EURJPY


EURAUD seems to be forming a rising wedge like formation. Rejected at the 200 daily SMA it is close to test the lower rising trend line. A break below some support at around 1.50 but not unlikely to drop to around 1.4750.
For upside to resume a break above 1.54 is needed.

 

Source: Saxo Group

EURCAD has broken key support at 1.3390. No strong support before around 1.3025.

Source: Saxo Group
Source: Saxo Group

EURCHF saying goodbye to parity moving lower. Down trend seems to be accelerating with no strong support to be seen. We are back in the 2015 territory, when SNB abandoned the floor and if that range is a guide EURCHF could drop to its lowest level back then i.e. around 0.90.
EURCHF has formed a Shoulder-Head-Shoulder like formation over the past 8 years since the collapse. Taking the distance from the Neckline to the Head and subtracting it from the breakout price indicates a price around 0.90 (indicated by the two horizontal arrows)

Source: Saxo Group
Source: Saxo Group

EURGBP is trading in a wide rising channel moving close to test the lower trend line. If broken there is downside risk to around 0.8450-0.8440.
Strong resistance at 0.8720

Source: Saxo Group
EURJPY trading in a wide rising channel. If RSI breaks above its falling trend line EURJPY is likely to move towards 145-146. If on the other EURJPY breaks below 139.80 the pair could be hit by selling pressure taking it down to 135-133.
Source: Saxo Group

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