Is the EUR/GBP downtrend over? The pair seems to be forming a double bottom forex chart pattern on its daily time frame, suggesting that a reversal might take place sooner or later. Price has yet to break above the formation’s neckline near the .8000 major psychological level before confirming whether or not an uptrend is likely. If that happens, the pair could climb by at least a hundred more pips, which is the same height as the chart pattern. Further gains could take EUR/GBP back up to the next area of interest between the .8200 and .8300 major psychological levels.
How low can EUR/CAD go? The pair has been selling off strongly in the past few months yet it appears to be testing an area of interest on its daily forex time frame. Price is stalling around the 38.2% Fibonacci retracement level, which lines up with a former resistance zone and the 1.4100 major psychological support. At the same time, stochastic is indicating oversold conditions, which means that euro bulls are getting ready to charge. In that case, EUR/CAD might bounce from its current levels and possibly test the recently broken support near 1.4500.
If you’re short EUR/CHF or planning to sell this pair, y’all ought to know that it is moving closer to SNB intervention levels! As you can see from the daily forex chart above, price recently breached support at the 1.2100 handle and looks ready to head to the next major support zone at 1.2000. Since this lines up with the SNB’s floor, traders might be anticipating jawboning or actual intervention once EUR/CHF moves closer to that area, especially with stochastic indicating oversold conditions. This might result to multi-hundred pip moves as it did so in the past so make sure you keep your eyes glued to that area!
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.