Mid-Week Technical Outlook: EUR

– With less than 24 hours until the highly anticipated European Central Bank Meeting (ECB), our currency spotlight shines on the euro!

Earlier in the week, we questioned whether ECB hawks could rescue EUR bulls…only for prices to later sink to levels not seen in two decades. The euro remains heavily pressured by recession fears with the conflict on its borders and an energy shock haunting investor attraction towards the currency. While fundamentally, the outlook for the euro points south – it will be interesting to see whether ECB hawks could offer short-term support for bulls this week. Prices are trading below 0.9900 as of writing and could extend losses if the dollar continues to appreciate.

Our focus this afternoon will be Euro crosses and the tool of choice is none other than technical analysis.

EURUSD waits on ECB

After slipping to levels not seen in 20 years, the EURUSD remains shaky and vulnerable to further losses. A solid daily close below 0.9900 could inspire a selloff towards 0.9700 as highlighted in the “Trade of the week” report. Should 0.9900 prove to be reliable support, a rebound towards parity and higher could be on the cards.

EURJPY eyes 144.00

As the Yen continues to weaken, this has propelled the EURJPY to levels not seen since late June. Prices are heavily bullish on the daily timeframe as there have been consistently higher highs and higher lows. ECB hawks could turbocharge the move higher, sending prices towards the 144.00 resistance level. Above 144.00 bulls could challenge 145.30 – a level not seen since December 2014.

Time for EURGBP to breakout?

A classic breakout opportunity could be forming on the EURGBP as prices slowly approach the 0.8680 resistance level. A solid breakout and daily close above this point may encourage a move towards 0.8720 and 0.8800, respectively. Technical indicators such as the 50, 100, and 200-day SMA and MACD favour further upside. If the EURGBP dips back toward 0.8580, then the next key level of interest can be found at 0.8500.

EURAUD gearing to push higher?

Things are turning bullish for the EURAUD with 1.4750 acting as a barrier for bulls. Beyond this point, we have the 100 -day SMA and 1.4900 which are likely to become key points of interest down the road. Should the upside take prices beyond 1.4900, the EURAUD could venture towards the 200-day SMA. Alternatively, a move back towards 1.4580 could be on the cards if 1.4750 proves to be a tough nut to crack.

EURNZD choppy and untamed

The EURNZD remains choppy and volatile as ever with prices swinging between losses and gains. A potential breakout could be on the horizon for this volatile currency as prices push beyond the 50, 100, and 200-day Simple Moving Average. A strong breakout and daily close above 1.6500 could inspire a move towards 1.6600 and 1.6800, respectively. Should 1.6500 prove to be reliable resistance, we may see a decline back towards 1.6300.