Euro Crosses Chop Higher


EURJPY – From last week, “the EURJPY rally has extended past the 3/12 high at 155.75 so focus is now on 157.72. This is where the rally from 152.66 will equal the 150.74-155.75 rally. A rally to 157.72 would possibly complete a 3 wave correction of the 159.68-150.74 decline and give way to a similar decline.” The rally topped out at 157.67 on 3/22 so we are now looking lower. Coming under 155.76 strongly suggests that the next leg lower is underway.

EURCHF – We also favor the idea that the EURCHF is putting the finishing touches on an A-B-C correction from the 3/5 low at 1.5931. On the 240 minute chart, new highs are not confirmed by RSI (divergence). If an A-B-C correction is unfolding, then price must top out before the 2/22 high at 1.6295. Coming under 1.6128 instills confidence in the bearish bias.

EURGBP – The correction following the 5 wave rally from .6536-.6869 that we were looking for is unfolding and price has reached our first support area of .6768. This is the 4th wave of one less degree so the pair may be forming a bottom from which to work higher. A rally above .6811 suggests that wave 3 up is underway. A continuation of weakness in wave 2 probes Fibonacci support at .6742.