EUR/GBP From the close at 0.8569, and last reported at 0.8592, EUR/GBP just broke vitals at 0.8621 and 0.8682. Below both then EUR/GBP’s trend lower is just beginning. The larger trend is found from below at 0.8090 to above at 0.8621. Targets lower are found at downtrend lines at 0.8544 and 0.8490. Break of 0.8544 and 0.8490 begins a new downtrend in EUR/GBP. Next downside points are found at 0.8613, 0.8578, 0.8555 and 0.8522. Most important is 0.8613 to 0.8610 because supports in GBP/EUR are found at 0.8610 from current 1.1669 which translates to current EUR/GBP at 0.8569. What this means is the downtrend in EUR/GBP resumes.
EUR/NZD. From close at 1.5093, big break points are located at 1.5368 and 1.5372. EUR/NZD fails to join the ranks of severe oversold as other EUR pairs yet correlations to EUR/USD runs +85%. Targets on corrections are uptrend lines at 1.5200 and 1.5257. Both must break to target 1.5368 and 1.5372. Levels higher are found at 1.5107, 1.5119, 1.5130, 1.5157, 1.5193 and 1.5196 then 1.5200. Long points are found at 1.5044 and 1.5046.
EUR/AUD. From close at 1.4427, big break points are 1.4528 and 1.4598. All week, 1.4500’s and 1.4600 will remain tough breaks for EUR/AUD. Why is because AUD/EUR breaks are located at 1.4524 and 1.4596. Massive hurdles for EUR/AUD and because AUD/EUR is oversold. EUR/AUD will be a volatile pair this week and as usual I will trade this pair all week. Next point higher for EUR/AUD is 1.4458 while below points are 1.4416, 1.4391 and 1.4389. Oversold begins from 1.4332 to 1.4264.
Brian Twomey, Inside the Currency Market, btwomey.com