Euro seems to building up the technical conditions for a broad-based, sustainable rebound. EUR/USD, EUR/GBP and EUR/CAD had reversed most of the losses of last two weeks, after rather brief downside breakouts. Attention would now be on whether these pairs could break through some near term resistance levels to confirm the turnaround.
Loss of downside momentum is clear in the bullish convergence condition in 4 hour MACD in EUR/CAD. It could have made a short term bottom at 1.4723, just ahead of 161.8% projection of 1.5798 to 1.5313 from 1.5783 at 1.4707. Firm break of 1.4792 resistance should indicate that EUR/CAD is possibly the whole fall from 1.5978. There is prospect of stronger rebound towards 1.5313 support turned resistance in this case.
Similarly, loss of downside momentum is clear in EUR/GBP too, as seen in daily and 4 hour MACD. A shot term bottom might be formed at 0.8470, just ahead of 100% projection of 0.9499 to 0.8670 from 0.9291 at 0.8462. Break of 0.8644 resistance should bring stronger rebound towards 0.8861 support turned resistance.
As for EUR/USD, a short term bottom was formed at 1.1703, just ahead of 38.2% retracement of 1.0635 to 1.2348 at 1.1694, on bullish convergence condition in 4 hour MACD. Break of 1.1988 resistance will add to the case that whole correction from 1.2348 has completed. Further rally would then be seen to 1.2242 resistance for confirmation.
