Euro suffered broad based selling today, except versus JPY and CHF. Markets seemed to take ECB minutes rather negatively. The cautious tone prompted talks that ECB could stay dovish for longer than expected. Let’s have a quick glance on how Euro pairs are doing.
EUR/USD breached 1.2302 minor support briefly, but stabilized since then. There is, so far, at least no downside acceleration through 1.2302 yet. And, even if that happens, the key support level is at 1.2214. As long as it holds, the triangle pattern from 1.2555 is still intact and larger up trend remains in favor to resume later..
EUR/JPY is staying in consolidation below 132.61 temporary top. But it’s holding well above 131.09 minor support. Thus, the rebound from 128.94 is still expected to extend higher at a later stage to 61.8% retracement of 137.49 to 128.94 at 134.22 and above.
EUR/CHF’s rally continues today and reached as high as 1.1888 so far. Long term up trend has just resumed this week and is on track for 1.2 handle.
EUR/AUD extended the choppy fall from 1.6189 t as low as 1.5868. But for now, it’s staying above 1.5857 minors support. Hence, price actions from 1.6189 are viewed as a corrective move. Larger up trend is expected to resume at a later stage. Nonetheless, firm break of 1.5857 will be a sign of trend reversal and turn focus back to 1.5621 key support.
EUR/CAD’s decline from 1.6151 extends today and reaches as low as 1.5490. The cross is on track for 38.2% retracement of 1.3782 (2016 low) to 1.6151 at 1.5246.
EUR/GBP’s downside breakout today now confirms resumption of medium term decline from 0.9305. Next target will be 61.8% projection of 0.9305 to 0.8745 from 0.8967 at 0.8621. But based on current momentum, it will likely extend further to 100% projection at 0.8407.
After all, we’d like to point out that outlook in Euro is indeed not that bearish in spite of today’s selloff. There is no doubt that EUR/CAD and EUR/GBP are in near term down trend. But there is not clear bearishness in EUR/USD and EUR/AUD yet. EUR/JPY is still likely to extend recent rebound. And EUR/CHF is making new high. So, Euro is overall, mixed only.