In today’s analysis, we will focus on the EUR as we have a nice depreciation movement here caused by one of the ECB members. In his interview, Olli Rehn from European Central Bank said, the ECB “will announce a package of stimulus measures at its next policy meeting in September that should overshoot investors’ expectations.” That was enough for the Euro bears to increase their selling activities. EUR plunged.
We were expecting bigger movement on EURUSD on Wednesday. Everything thanks to the sideways trend locked inside of the triangle pattern. EURUSD decided to brake the lower line of this pattern, which was in line with those fundamental comments from the ECB official. Yesterday, we got a small flag and another leg down. Currently, the price paused but considering the general sentiment, we are anticipating a further slide here.
EURGBP was going up for the past 14 weeks in a row! Seems that the time for a correction has finally come. We do have a good place for that as we are on the long-term horizontal resistance. Sellers obviously got a boost from the comments from the ECB and they needed that as the situation on the GBP was not encouraging to purchase Sterling. Correction should aim the mid-term support around 0.91
Last one is EURCAD, where we do also have a good bearish setup. Few days ago, the price successfully tested the combination of horizontal and dynamic resistances. The price went down, giving us a sell signal. In addition to that, EURCAD is currently attacking a mid-term support around 1.477. Once the price will close a day below the yellow area, the sell signal will be triggered.
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis
This article was originally posted on FX Empire