Technical Overview: Important EUR Pairs

EURGBP

Ever since the EURGBP flipped from its August highs, near 0.7422, it kept marking a lower low formation, as indicated by the descending trend-line resistance that currently restricts its immediate up-move, near 0.7350-55; however, pair's downside have been limited by the 38.2% Fibo of its August rally, near 0.7250-40, plotted with horizontal support. Presently, 23.6% Fibo, near 0.7300 round figure mark can become a nearby support prior to the pair's test of 0.7250-40 support area, breaking which 50% Fibo, near 0.7180, 0.7150 and the 0.7100 round figure mark are likely consecutive supports for the pair before it can plunge to 0.7000 psychological magnet. On the upside, a sustained break of 0.7355 can quickly trigger the pair's up-move to August highs, breaking which 0.7450 horizontal mark could restrict further advances by the pair. Given the pair's ability to break 0.7450 on a closing basis, chances of its rally towards 0.7600 area can't be denied.

EURJPY

Failure to break 137.00 horizontal resistance pulled the EURJPY towards testing a lowest level in a week; however, 38.2% Fibo of its August decline, near 134.80-70, can provide immediate support to the pair. Moreover, a sustained break of 134.70, can make the pair test 134.20, 133.70 (23.6% FIbo) and the 133.00 round figure mark prior to targeting the August lows near 132.20. Alternatively, 136.50, near to 61.8% Fibo, becomes an immediate resistance before the pair can target 137.00 horizontal mark while a sustained break of 137.00 can quickly fuel the pair to 138.00 round figure. Should the pair successfully breaks 138.00, 138.90 – 139.00 horizontal region becomes an important resistance to limit the pair's up-move.

EURAUD

Short-term symmetrical triangle formation, with the support being 1.5760-50 and the 1.6050 as a resistance seems limiting the near-term trading of EURAUD. The pair currently heads towards the support re-test, breaking which it can quickly decline to 1.5580 and the 61.8% Fibo of its August advance, near 1.5430. Should it manages to extend the decline below 1.5430, the pair becomes vulnerable to test sub-1.5200 area, targeting the 76.4% Fibo, near 1.5160. Given the pair reverses from the mentioned support, 38.2% Fibo, near 1.5880 is likely intermediate barrier prior to the pair's run towards 1.6050 resistance line while a break of which can trigger the pair's immediate up-move towards 1.6150, 23.6% Fibo, and the 1.6300 round figure mark. On the sustained advance beyond 1.6300, the pair becomes capable of targeting August highs, near 1.6600 area.

EURNZD

On Monday, the EURNZD managed to rally towards 1.7997 but failed to break its well-established rectangle formation resistance, near 1.8000 round figure mark, observed since the pair reversed from 1.8730 spike on August 24. The pair now seems heading towards 38.2% Fibo of its July – August advance, near 1.7700, breaking which 50% Fibo, near 1.7380, and the formation support, near 1.7250, are likely important supports that could limit further declines of the pair. Should it manages to break 1.7250 on a closing basis, it can aim 1.6650 horizontal support, also encompassing 76.4% Fibo, while 61.8% Fibo, near 1.7050, can act as an intermediate support for the pair. Meanwhile, a sustained break of 1.8000 mark can witness 23.6% Fibo, near 1.8100 as an immediate resistance prior to targeting August highs, surrounding 1.8700 area. Should the pair extends the upward trajectory beyond 1.8700, the 61.8% FE of the said move, near 1.9000 psychological magnet can provide strong resistance to the pair.

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