Today’s Forex Guide

Euro Crosses Trading: EUR/GBP | EUR/CAD | EUR/JPY | EUR/USD


May.17.2016

Euro Crosses Trading: EUR/GBP | EUR/CAD | EUR/JPY | EUR/USD

Beginning of May ma Invest Divas noticed a trading opportunity in EUR/USD. With the non-monetary policy meeting coming up, Mr. Euro won't be only making hip moves against Ms. USA alone. Taking a quick look at the forex dance floor, you'd notice opportunities for Euro crosses trading including British Pound, Canadian Dollar and Japanese Yen. If you are 100% sure that your current financial situation is healthy enough to trade forex,  please go ahead and scroll down. Otherwise, get your bones over to our financial therapy course and start planning your future financial freedom!

P.S. Yesterday was my first day as an adjunct professor at Baruch College teaching wealth management. Too excited!

Euro crosses trading cartoon - UK Canada US Japan flag head dancing women clipart forex Euro crosses trading cartoon - UK Canada US Japan flag head dancing women clipart forex

 

 

Euro Crosses Trading: Fundamentals

Head of European Central Bank, ECB's Mario Draghi wasn't feeling the good vibes in the euro zone in their last non-monetary policy meeting. He said low interest rates are only the symptom, not the cause of an underlying problem across major economies. To add insult to the injury, Euro zone's Gross Domestic Product (GDP) came out in red on Friday May 13. On the news, Mr. Euro dropped his pants against most of his major forex dancing partners.

Note that Mr. Euro is quoted first in most of these major currency pairs. That means more pessimism on EU's fate, would drag these pairs lower. More optimism will push Euro crosses trading pairs higher.

The Good

  • Euro zone economy above pre-crisis peak

  • Healthy household consumption and a rebound in investment

The Bad

  • High debt, weak bank profits, high unemployment and vast excess capacity in the economy
  • EU back in deflation

Read details

Keep an eye on...

  • ECB's  Non-monetary policy meeting on Wednesday May 18
  • April's Consumer Price Index (CPI) on Wednesday May 18
  • ECB Monetary Policy Meeting Accounts on Thursday May 19
  • May's preliminary CPI  on Tuesday May 31

Note that Mr. Euro has become a new safe haven every time China announces miserable economic data. That's why despite bad data from Europe, Mr. Euro managed to keep face at least a tiny bit when Chinese data also came in red.

CAUTION: To do a 360 analysis on Euro crosses, you MUST do your due diligence on the economy of  cross currencies as well.

When in doubt, consult Invest Diva.

P.S. In the chat box, ask to see if you are eligible for a discount.

Euro Crosses Trading: EUR/GBP

 

Once you've crushed the fundamentals, you can move on to the next step, the technical point of the Invest Diva Diamond .

 

Big Picture Monthly Chart: The pair is moving inside a downward channel. Currently testing the 0.7850 level which falls on two Fibonacci retracement levels: Long term 50% and short term 23%. The pivot of 0.76 is also pretty important. Downward movements towards these pivots would indicate further long term bounces inside the downward channel.

EUR/GBP Monthly Chart - Euro Crosses Trading EUR/GBP Monthly Chart - Euro Crosses Trading

Daily Chart Market Sentiment: The pair is trying to break below the ichimoku cloud and has formed a hammer candle after testing the pivot zone. A confirmation of a break above the Ichimoku would be yet another bearish signal for EUR/GBP.

EUR/GBP Daily Chart - Euro Crosses Trading EUR/GBP Daily Chart - Euro Crosses Trading

 

Euro Crosses Trading: EUR/JPY

Bad Chinese data could make both the Euro and Japanese Yen stronger. That is why this Euro cross is mainly consolidating inside the Ichimoku cloud.

EUR/JPY Monthly Chart - Euro Crosses Trading EUR/JPY Monthly Chart - Euro Crosses Trading

On the daily chart, the pair is struggling to break above the Ichimoku cloud and therefore the sentiment remains bearish at the moment.

Euro Crosses Trading: EUR/CAD

This pair could be forming a Double Top chart pattern. However it remains above the Ichimoku cloud on the monthly chart. Need to wait for a confirmation. Neckline: 1.3520

EURCAD Monthly Chart - Euro Crosses Trading EUR/CAD Monthly Chart - Euro Crosses Trading

Euro Crosses Trading: EUR/USD

The pair was not able to break above the consolidation box on the monthly chart. However on the daily time frame, it is moving in an upward channel. More range trading inside the channel and the box is possible. Pivot: 1.11. Resistance: 1.15

EURUSD Daily Chart - Euro Crosses Trading EUR/USD Daily Chart - Euro Crosses Trading

 

Here are the important EUR/USD levels to keep an eye on:

Support Levels Turning Point Resistance Levels
1.11 1.15 1.15
1.05 1.11 1.18

A break below Ichimoku cloud would be a strong bearish signal targeting 1.05.

Make sure you have checked your financial health before trading or investing. Your financial situation may not be suitable for the risk that involves in trading or investing activities.

 

Reach your financial freedom with Kiana. Start Free Now.

 

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 xoxo

Kiana 喜愛成
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