Euro is suffering steep selloff just ahead of European session. In particular, EUR/USD’s break of 1.1507 support confirms medium term down trend resumption. The pair should be targeting 1.1186 fibonacci level next.
EUR/CHF is on course for 1.1366 support. Based on current momentum, the medium term correction from 1.2004 should be resuming for 1.1198 key support level before bottoming.
EUR/GBP also suffers steep pull back after failing 0.9043 fibonacci level. But for the cross, outlook stays bullish as long as 0.8854 support holds.
EUR/JPY’s break of 127.13 support confirms our view that corrective rise from 124.61 has completed with three waves up to 131.97 already. The larger fall from 137.49 could already be resuming.
Here is an update to our short position (sold at 128.60) as mentioned in prior comment. The development is in line with our expectations so far. We’ll hold short in EUR/JPY and lower the stop to 128.10 (slightly above 128.04 minor resistance). The stop is relatively wide for giving the position a bit of space to breathe in case of mild recovery. As noted before, we’re indeed eyeing at least a test on 124.61 low. We’re decide whether to take profit around there later, based on downside momentum in the cross.
