Weekly Technical Perspective on EUR/USD, EUR/JPY and EUR/AUD

In this array we scale-back and take a demeanour during a broader technical design to benefit a bit some-more viewpoint on where we are in trend. Here are a pivotal levels that matter on a weekly charts for a Euro crosses as we conduct deeper into Mar trade.

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EUR/USD Weekly Price Chart

EUR/USD Price Chart - Weekly Timeframe

Notes: In late-February we remarkable that Euro was probing into an area of slope support and that losses were expected to be limited while above former pitchfork insurgency (blue). Indeed cost dipped into a 1.2167 support separator before reversing aloft with prices rallying scarcely 2% off a new lows. Initial insurgency stands with a 2018 high-day tighten during 1.2409 with pivotal insurgency solid during 1.2598 where a 2008 trendline insurgency converges on a 61.8% retracement of a 2014 decline.

Bottom Line: The broader concentration stays on a mangle of a 1.2167-1.2598 operation for superintendence with a risk weighted to a topside while above connection support during 1.2167. From a trade standpoint, I’ll preference vanishing debility for widen into multi-year channel insurgency – demeanour for greeting there.

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EUR/JPY Weekly Price Chart

EUR/JPY Price Chart - Weekly Timframe

Notes: EUR/JPY has been trade within a proportions of a well-defined ascending pitchfork formation fluctuating off a Jul 2016 low with prices violation next a median-line in early February. The decrease topsy-turvy off connection support final week during 129.30/60 where a 52-week and 200-week relocating averages intersect on simple parallel support. Initial insurgency stands during a Jan lows during 133.02 corroborated by 134.29 and a 2018 open during 135.16. Note that weekly RSI form incited only forward of 40 and suggests a broader up-trend stays total from a movement standpoint.

Bottom line: The evident risk is aloft though eventually a crack by a median-line / yearly open would be indispensable to symbol resumption of a broader uptrend. Critical support and broader bullish cancellation now rests with a 2015 low-week annulment tighten during 128.42.

EUR/JPY IG Client Positioning

EUR/JPY Client Sentiment

  • A outline of IG Client Sentimentshows traders are net-short EURJPY- a ratio stands during -1.22 (45.1% of traders are long) – diseased bullishreading
  • Long positions are 2.4% reduce than yesterday and 11.9% reduce from final week
  • Short positions are 1.3% aloft than yesterday and unchanged from final week
  • We typically take a contrarian perspective to throng sentiment, and a fact traders are net-short suggests EURJPY prices might continue to rise. Traders are serve net-short than yesterday and final week, and a multiple of stream positioning and new changes gives us a stronger EURJPY-bullish contrarian trade disposition from a view standpoint.

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EUR/AUD Weekly Price Chart

EUR/AUD Price Chart - Weekly Timeframe

Notes: EUR/AUD posted a weekly annulment candle final week off vicious insurgency during 1.5952-1.6018 a segment tangible by a 78.6% retracement of a 2015 decrease a 100% prolongation of a 2017 allege and converges on a median-line of a extended descending pitchfork arrangement fluctuating off a 2011 2012 lows. Divergence in a movement form serve highlights a hazard of a deeper pullback here.

Bottom line: Could see some some-more back-and-fill here though a risk stays reduce for now while next this pivotal insurgency barrier. Interim support targets rests during 1.5420s with broader bullish cancellation solid during 1.5080. Ultimately, a incomparable improvement towards constructional support would offer some-more auspicious long-entries within a proportions of this multi-year advance.

Previous Weekly Technical Perspectives

— Written by Michael Boutros, Technical Currency Strategist with DailyFX

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