For those who want to take it nice and slow to start the year, then here’s a daily chart for ya! EUR/GBP has been dancing to the tune of a rising trend line on the daily chart since mid-2010, and it looks like the pattern isn’t going to let up anytime soon. Stochastic is pointing to a bit of a drop, so y’all bears better watch the .8400 handle. Meanwhile, if the bulls are in the mood for more euro shopping, then the pair could go all the way up to the .8900 level.
Next up, let’s move on to everyone’s favorite major, EUR/USD! After rising and falling throughout 2010, the pair has been consolidating over the past month. It seems to me that the pair is beginning to form a long-term pennant, finding support from a rising trend line , while having a tough time closing above resistance at 1.3420. Look out for a solid marubozu candle above or below the resistance or support level as a signal of which direction EUR/USD could kick off the new year!
Lastly, it’s time for a lil’ Fib action! EUR/JPY eased back a little over the past few candles after dropping heavily in the 4-hour chart, but it looks like the 61.8% Fib was too hot for the bulls to handle. Will the pair continue to go on its merry way down to 106.50, or will the bulls hustle enough trading muscle to push the pair to 110.50? Be on the lookout for this one!