The Euro Suffers Ahead Of ECB Monetary Policy Meeting

• 24 May 2018

EUR/JPY

The EUR/JPY pair has broken a long-term support level at 129.29, however, the pair has reached oversold conditions. A large volume of sellers have joined the market, denoted by the rise in trading activity and strong bullish candle to start the bearish run. Fundamental factors later in the day will play a role in near-term price action.

Impact event: ECB Monetary Policy Meeting at 14:30 GMT+3 will impact all Euro pairs.

EUR/CHF

The EUR/CHF pair’s dramatic descent appears to be losing steam. Buying pressure has increased in recent candles which may be the first sign of an imminent trend change. RSI indicates the pair is strongly oversold. MACD has broken the zero line and has extended the negative trajectory, indicating the bearish momentum will continue.

EUR/GBP

The EUR/GBP pair is testing the low price SMA and with MACD fast approaching the zero line; bearish momentum appears to be rising. The next likely price target for sellers is the 0.870 price level.

EUR/CAD

The EUR/CAD pair is testing the 1.500 price level as RSI flattens at the 30 support level. MACD remains in negative territory and it appears sellers hold more weight in the pair.