The Euro Struggles To Gain Traction Against Major Peers

• 5 Jan 2018

EUR/JPY

The EUR/JPY pair has reached overbought conditions with a break of the upper Bollinger band coupled with RSI breaking the 70 resistance line. Momentum indicators appear to be positive and volume has risen into the move suggest that there is still some appetite from Euro buyers to drive prices higher.

Impact event: Eurozone CPI data will be released at 12:00 GMT+2 and will impact all Euro pairs.

EUR/NZD

The EUR/NZD pair has broken below the 20-period EMA with momentum indicators highlighting bearish sentiment in the market. Price action is approaching a previous support level at the 1.676 price line. Given the fact that momentum indicators have stalled at current levels; there may be limited downside for the pair.

EUR/CHF

The EUR/CHF is approaching overbought conditions, however, there appears to be further upside potential. Momentum indicators and moving averages all have upward trajectories. Fundamental factors later in the day will likely drive near-term price action.

EUR/GBP

There is a tussle going on between the Euro and the Pound recently. Despite the pair breaking above the 20-period EMA in mid-December, the Euro has failed to gain enough momentum to push prices higher. Momentum indicators have flattened in slightly positive territory, however volume appears to be turning more negative. Political factors are likely to determine near-term price action for  this normally ranging pair.