Daily Market Technical Analysis: Has the Euro Hit Bottom?

EUR/USD (1.32127)

Even though the euros steady fall has lost momentum, the fall from 1.3995 is expected to continue. A break below 1.2905 is expected to target 1.2890 and lower. On the flip side, we need a break above 1.3299/1.33 to indicate a bottom in place. Till this happens the outlook remains bearish.

In the event we remain bearish, a trader might want to consider the following. The euro has been crashing through support levels. We have 1.31 the 1.30 coming up as the next two key technical levels. Then we have 1.29. Using these levels as profit targets, with stop losses, might be helpful.

USD/JPY (¥103.757)

The technical analysis of the USD/YEN has not changed. We need clearer signals before making any decisions. The resistance at ¥104.10 is our focus. This could be a strong level that could trigger a reversal but with the lack of clear bearish signals, overall conviction is lacking.

A move below ¥103.50 targets ¥103.10 then ¥103.05. Alternatively, should the dollar continue its push higher, a break above ¥104.10 can target ¥104.30 then the key technical level at ¥105.40.

GBP/USD (1.65971)

The Sterling continues to trade sideways at this level looking for a direction. We expect the recovery to continue at some point but be limited at 1.6740.

In this case the continued fall from the top ear 1.7188 is expected to resume. A break below 1.6535 targets 1.6280 and lower.