Euro Technical Forecast, EUR/USD, EUR/GBP, EUR/JPY, EUR/NZD – Talking Points
- Euro technical outlook seems slightly bullish against its major peers
- EUR/USD, EUR/GBP and EUR/NZD saw key breakouts to the upside
- EUR/JPY eyeing ‘Golden Cross’, but prices need to breach resistance
EUR/USD Outlook – Slightly Bullish
Not only did the Euro set new 2020 highs against the US Dollar, but EUR/USD pushed to its highest since the end of April 2018 this past week. The pair took out the key 1.1932 – 1.2011 resistance zone, exposing the midpoint of the Fibonacci extension at 1.2290. Underpinning the pair’s progress has been a bullish ‘Golden Cross’ that formed when the short-term 20-day Simple Moving Average (SMA) crossed above the medium-term 50-day one back in November. However, a Shooting Star candlestick seems to have formed on Friday, a sign of indecision. Should prices turn lower ahead, these may act as key support.
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EUR/USD Daily Chart
EUR/USD Chart Created in TradingView
EUR/GBP Outlook – Slightly Bullish
The Euro could be on the verge of extending gains against the British Pound after EUR/GBP closed above falling resistance from September. This follows positive RSI divergence, a sign of fading downside momentum. However, confirmation of the breakout has been somewhat lackluster, especially as prices hover around the 50-day SMA. I would like to see a push above the 38.2% Fibonacci extension at 0.9098 to bolster the case to the upside. Key support sits below as the 0.8881 – 0.8861 range.
*Note for GBP traders, Sterling can be quite sensitive to Brexit news flow as policymakers try to come to an agreement before year-end
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EUR/GBP Daily Chart
EUR/GBP Chart Created in TradingView
EUR/JPY Outlook – Neutral
The Euro extended gains against the Japanese Yen, but EUR/JPY stopped short of surpassing highs from August around 126.76. As such, this leaves a risk of a turn lower should resistance hold ahead. But, an argument to the upside is that a bullish ‘Golden Cross’ recently formed, alluding to the potential for more gains. If prices rise, keep an eye on the 2019 high at 127.50. Clearing the latter exposes the 61.8% Fibonacci extension at 129.44. Otherwise, a turn lower places the…
Read More: Euro Outlook Hinges on Key Breakouts: EUR/USD, EUR/GBP, EUR/JPY, EUR/NZD