Problem inside EUR/USD prices is correlations to 10 of EUR/USD’s currency pairs remain in negative territory. EUR/INR at + 95% is EUR/USD’s best pair. EUR/GBP is next at + 40% then EUR/SEK at + 20% yet EUR/NOK runs negative 59%. Further, EUR/PLN runs negative 59% and EUR/JPY minus 38%.
EUR/USD bottoms today are located at 1.1199 and 1.1193. Not only are 1.1199 and 1.1193 solid supports for today but just below lies overall vital points at 1.1183, 1.1172 and 1.1200. Shorts must break 1.1172 while 1.1200 is bottom of the channel and must break to see a run to 1.1183 and 1.1172. Yet 1.1200 may serve as reload point for longs for short term moves over coming days.
Levels 1.1183 and 1.1172 sit idle for many days and resists upward movements alongside any EUR/USD rises and lends zero confidence to EUR/USD higher prices.
From 1.1183 and 1.1200, EUR/USD is severely overbought and matches its overbought counterparts in AUD/USD and NZD/USD.
The points to watch and targets today are located at minor 1.1298 and 1.1327 in between the next major point at 1.1357. Shorts will travel back to 1.1272, 1.1267, 1.1263 and 1.1257 supports then the path is clear back to lower 1.1200’s between 1.1208 to 1.1203.
The EUR/USD strategy over past 2 days is shorts only as EUR/USD is far to overbought to consider longs and signal ratios are at exorbitant extremes. Overall, the EUR/USD price contains severe problems particularly EUR/CHF and all cross pairs.
EUR/GBP: The big point break in EUR/GBP is located at 0.8575. Overall, GBP/EUR shares a solid correlation to GBP/USD and explains the current EUR/GBP price struggles as a poor performer and low 40% correlation to EUR/USD.
Just below big break at 0.8575 lies 0.8531 and 0.8516. Upper prices in EUR/GBP achieves by a cross higher at 0.8472 however today’s target is located at 0.8474. Current EUR/GBP range is located from intraday 0.8446 to 0.8472. Clarity to 0.8446 is a firm uptrend begins on a break and hold above 0.8441 and can see EUR/GBP in the 0.8600’s in days ahead.
EUR/GBP bottoms today are solid at 0.8399 and 0.8393.