Euro crosses may have found a short term bottom after the spike lower following ECB last week. The chart patterns for most Euro crosses are showing RSI divergences and candlestick reversal patterns further supporting our view. We will be looking to buy Euro crosses on pullbacks with stops below the ECB lows. We are specifically looking at the following pairs.
EUR/CAD (Figure 1): This pair is showing RSI divergence on the daily charts while the price has broken above its declining trend line from 1.30. We will be looking to buy pullbacks to the 1.23 with stops below the lows at 1.22 and targets in the 1.28-1.30 region.
EUR/AUD (Figure 2): This pair is also showing a pattern similar to EUR/CAD. However the price is yet to break above its declining trend line. We will wait for a break and retest of the declining trend line to go long with stops below the lows and targets of 1.22 at a minimum.
EUR/GBP (Figure 3): This pair has already established an ascending channel. We expect prices to stay above the 0.7820 levels. Any pullbacks to the 0.7850 levels will be great opportunities to go long with stops below 0.7820 and targets close to 0.80.
We will post updates to these setups during the week.
Good luck trading.
Figure 1: EUR/CAD
Figure 2: EUR/AUD
Figure 3: EUR/GBP
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