Have been reading that carnage is expected and word is EUR/USD has already dropped to 1.1029 – although my MT4 hasn’t started as yet, so we will have to wait & see. Meantime here are some levels for some of the euro pairs :
- EUR/USD – was already bearish & shorts at CFTC increased last week. Putting the 1.1029 aside for the time being – 1.1052 is the first level of support & if breached 1.0819 comes into play where a high volume node on the VPOC awaits.
- EUR/JPY – Has been in congestion for a number of days having failed to breach the 140.78 price point & now looking to turn bearish. The immediate level below is at 137.57 with any move through here then likely to test the 136.69 region. The VPOC continues to remain in the 134.94 region for the time being and should this be taken out then a longer term bearish trend will ensue.
- EUR/AUD – The interest rate cut from the PBOC will also have an effect on this pair which for the past three weeks has been moving sideways. Here Friday’s weak up candle may be validated as the pair is hit from both sides. First line of support is at 1.4404 and any move through here is then likely to test a more sustained platform of support at 1.4225. The VPOC here remains at 1.4141.
Whatever happens – it’s going to be an interesting night and week ahead for traders.