A Technical view of the market with the use of Harmonics Analysis
Ahead of Thursday’s ECB meeting and with a crisis brewing in Spanish Catalonia the EUR is trading heavy or at significant resistance in some crosses which are worth watching for bearish reversals.
EURUSD failed at the 50% retrace of the decline from the September high and is looking for another leg lower. 1.1668 is major support and a break below targets 1.1482 and potentially but less likely 1.13.
EURCHF is at important daily Fibonacci resistance. The 1.618 of 2016 high to low correction and where the rally from the February 2017 low is 0.618 of the sharp rally from the 2015 lows which is very common in corrections. Watching for a bearish reversal and pullback at 1.1550-1.16 zone. EURGBP has failed again at the 50% retrace of the decline from the August highs. Holding above 0.8743 keeps the bigger uptrend intact and this level is about to be retested.
EURAUD is testing the top of a long-term parallel channel and after a false break higher on 11 October the path of least resistance is likely lower and below 1.4927 is a bearish trigger and targets a return to the July lows next at 1.4416 and the 200 day MA.
EURNZD has reached harmonic pattern resistance at 1.6825-1.6937 and we are watching for a bearish reversal. A daily close above 1.70 would be a bullish continuation and next target is 1.7208 and 1.7365.
This article was written by one or more of the following contributors: Blake Morrow, Nicola Duke, Grega Horvat, Steve Voulgaridis and Stelios Kontogoulas. They are all analysts at ForexAnalytix which provides macro & technical analysis for various financial instruments. Forex Analytix primary goal is to educate traders of all experience levels and to provide a wide range of tools which can help with their trading decisions.
This article was originally posted on FX Empire
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