The Euro Dominates Against Major Peers

• 25 Oct 2017

AUD/USD

The AUD/USD pair has reached a new low at the 0.771 price level, however there are indications that the bearish move will not be sustained. A break of lower Bollinger band coupled with RSI reaching the oversold 30 zone, could indicate a potential bullish reversal. Fundamental factors have come into play for the pair with disappointing CPI data this morning from the Australian economy.

EUR/CHF

The EUR/CHF has reached a market top having broken through the upper Bollinger band, with the beginnings of a bearish candle signalling a potential reversal in today’s trading session. At the same time, RSI has bounced back from overbought conditions at the 70 line and is now indicating sentiment has become less positive. For sellers, the next price target is the 1.158 price level.

EUR/CAD

The EUR/CAD has tested the upper Bollinger band on several occasions during its advance over the last few days. There is some further upside potential considering sentiment remains fairly bullish; with a recent break of the zero line on MACD and RSI indicating further upside potential. Whether prices will reach the previous market top at 1.499 price level remains uncertain; volume has dropped in the last few trading sessions, indicating declining interest in the pair.

Impact event: Bank of Canada Rate Statement at 17:00 GMT+3 will impact CAD pairs.

EUR/AUD

The EUR/AUD pair has reached a previous top at the 1.521 price level, which coincides with a break of the upper Bollinger band. Additionally, RSI is fast approaching the overbought line which may suggest that a bearish reversal is imminent. MACD has decelerated indicating that momentum has turned less positive. Volume is elevated, therefore the question is whether buyers have enough conviction to push prices beyond the 1.521 price level.