Euro & Pound Pairs – Forex Analysis & Charts
Charts in Focus:
EUR/USD bouncing off support around 11000 is starting to prove to be short-lived as it turns down off resistance via the trend-line from off the December high and the underside of the trend-line rising up from October. A break below 11000 could have the low from the fall under fire as new cycle lows appear to be in the works.
EUR/USD Daily Chart (hit resistance, could roll lower again)
EUR/JPY appears to be in a corrective-move off the recent low. A bear-flag could be in the pipeline, and with the cross-rate below the September trend-line, the broader downtrend looks ready to reassert itself. The 200-day may put a lid on the corrective up-move, while a breakdown below 11977 should have EUR/JPY rolling downhill again.
EUR/JPY Daily Chart (consolidation pattern could form here)
GBP/USDcontinues to find buyers around the 13000/12940-area. It appears though that this area of support is becoming increasingly weakened by the repeated attempts to break it. Should we see Cable get some separation soon, look for it to sell off towards the 200-day under 12700.
GBP/USD Daily Chart (holding support, for now)
GBP/JPY is finding good support around 14100/4080, which is keeping it buoyed for now. However, a descending wedge is coming into view and could spell trouble soon. Sterling versus both the Dollar and Pound looks set to eventually break support; however, support is support until it is broken.
GBP/JPY Daily Chart (descending wedge forming)
For all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.