Euro Pairs Steady Ahead of Mario Draghi’s Speech

• 20 Nov 2017

EUR/CHF

The EUR/CHF pair has broken the 20- period EMA and now heading towards a previous resistance level at the 1.158 price level. RSI supports the bearish momentum, with a sharp downward trajectory after reaching overbought conditions.  MACD remains in positive territory, however, to support the long-term uptrend. Fundamental factors later in the day may play a role in the near-term direction of the pair.

Impact event: ECB President Mario Draghi speaks at 17:00 GMT+2 which will impact all Euro pairs.

EUR/JPY

The EUR/JPY pair has had a clear break of the 20-period EMA with two strongly bearish candles, with the current candle piercing the 131.23 price line. Momentum indicators echo the bearish momentum with MACD hitting the zero line and RSI sharply approaching oversold conditions. Volume has been rising into the move indicating strong conviction from sellers.

EUR/GBP

The EUR/GBP is testing both the 20-period EMA and the 0.887 price level, having broken a previous resistance level at the 0.982 price line. Momentum indicators confirm bearish sentiment with MACD remaining below the zero line, however neither are strongly bearish, therefore, fundamental factors are likely to play a role in future price action.

EUR/AUD

The EUR/AUD has been experiencing selling pressure after hitting a market top. A bearish candle has broken the upper Bollinger band to start today’s trading session. RSI has flattened at the 70 overbought line, suggesting the pair may be on the verge of a bearish reversal. Volume has been rising in recent sessions indicating increasing interest in the pair.