Euro, EUR/AUD, EUR/CHF, EUR/CAD – Talking Points
- Euro may push higher against major counterparts
- EUR/AUD is eyeing a bullish candlestick pattern
- EUR/CHF faces new range, EUR/CAD may climb
Euro Technical Analysis
The Euro may be preparing to accelerate gains against its major counterparts. On the daily chart is my majors-based Euro index, and it has confirmed an upside breakout through a zone of resistance that has held since late May. Rising support from late February is also guiding EUR higher despite aggressive losses back in March and April. The 61.8% Fibonacci retracement is now in focus at 1.5657.
Majors-Based Euro Index – Daily Chart
*Majors-Based EUR Index Averages Euro Versus USD, JPY, GBP and AUD
EUR/AUD Technical Outlook
The Euro may attempt to push higher against the Australian Dollar after EUR/AUD formed a Morning Star candlestick pattern. This is a bullish formation, but prices will also have to overcome the 50-day Simple Moving Average (SMA). A daily close above 1.6401 could pave the way to test 1.6590, an inflection level established in January. A turn lower would place the focus on key support, a range from 1.6034 to 1.6117.
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EUR/AUD - Daily Chart
EUR/CHF Technical Outlook
EUR/CHF is struggling to find more gains after breaking a Falling Wedge chart formation, which typically carries bullish implications. Resistance seems to have formed between 1.0778 and 1.0797, with key support at 1.0717. Still, the dominant downtrend may remain intact by key falling resistance from 2018. “Potential support” may reinstate the focus to the upside if prices fall there next – blue-dashed line on the chart below.
| Change in | Longs | Shorts | OI |
| Daily | -8% | 7% | -1% |
| Weekly | -18% | 2% | -9% |
EUR/CHF - Daily Chart
EUR/CAD Technical Outlook
After much persistent consolidation, EUR/CAD is making meaningful upside progress, but it may not necessarily be in the clear yet. Negative RSI divergence warns that upside momentum is fading. At times, this can precede a turn lower. Near-term rising support from late May – red line below – could keep losses at bay. Otherwise, the Euro may rise against the Canadian Dollar towards the 38.2% Fibonacci extension at 1.5714.
EUR/CAD - Daily Chart
--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
