Forex

Euro Increasingly Overstretched Against the Pound EURJPY
EURCHF
EURGBP




Commentary – The EURJPY failed at previous highs of 167.77 and has subsequently posted a sharp decline through worthwhile support. Given a break below previous spike-lows of 160.46, risks remain high for a further test of congestion levels/Fibonacci support of 158.49. Further support is seen at the 61.8% retracement of 149.21-167.77 at 156.33, while previous support at 160.46 may look to cap rallies to the topside.
Strategy – Flat


Commentary – The EURCHF has likewise broken through clear support with recently strong tumbles, failing at its 200-SMA and the key 61.8% Fibonacci retracement level at 1.6425. Risks subsequently remain high for a further test of the 78.6% of the 1.6175-1.6827 move at 1.6315 and eventually the full retracement of the bull wave at 1.6175.
Strategy – Flat


Commentary – The EURGBP has broken through key resistance at a potential triple-top of 0.7028, leaving risks for further rallies through short term trade. Subsequent price targets include previous multi-year peaks of 0.7109. Yet it serves to note that recent rallies leave the EURGBP near firmly overbought levels on a weekly basis. A failure to break above further resistance at 0.7109 leaves risks high for a short-term correction.