- EUR/USD plumbing new 2014 lows, but bounce possible this week
- GBP/USD nearing strong bullish trend line support at 1.6900
- USD/JPY descending triangle getting tight, may break soon
- AUD/USD in play, strong resistance looms at yearly pivot (0.9450)
** All data and comments in this report as of approximately 16:00GMT on Friday **
EUR/USD
- EUR/USD ticked below key 1.3500 support last week but…
- …was unable to follow through, and Slow Stochastics are still oversold
- Traders may be looking to fade rallies toward 1.3550-1.3600
The EUR/USD had an unusual week, bizarrely breaking below key support at 1.3500 on Tuesday before consolidating in the upper-1.3400s for the remainder of the week. From a technical perspective, the lack of a bearish continuation after breaking below support is a potential warning sign for sellers, as is the oversold Slow Stochastics. That said, the MACD still shows bearish momentum, so the market may look to fade any shallow bounces toward the 20-day EMA at 1.3550 or the 1.3600 handle later this week.
About the Author
Senior Technical Analyst for FaradayResearch. Matt has actively traded various financial instruments including stocks, options, and forex since 2005. Each day, he creates research reports focusing on technical analysis of the forex, equity, and commodity markets. In his research, he utilizes candlestick patterns, classic technical indicators, and Fibonacci analysis to predict market moves. Weller is a Chartered Market Technician (CMT) and a member of the Market Technicians Association. You can reach Matt directly via e-mail (mweller@gaincapital.com) or on twitter (@MWellerFX).