During today’s market scan, a few EURO pairs popped up on the radar as the price seems to have (at least for now) found support at long-term key price levels. For all the Forex pairs discussed in this article, we will also consult the Trend Rider indicator to obtain additional momentum and trend information.
The EUR/JPY traded into the September 2019 support level that led to a strong bull market back then. It’s still early to tell whether the level will hold but the last 2 trading days are showing a temporary pause in the previous downtrend.
The Trend Rider on the Daily timeframe is still red, confirming that it is too early to start buying just yet.
The EUR/CHF is highly correlated to the EUR/JPY and the price is also showing early signs of fading momentum on the Daily timeframe.
The price also broke the recent downward trendline but failed to pull away afterward. The price also completed a 138 Fibonacci retracement when you measure the last trending phase.
The Trend Rider background color turned green already, but without a green histogram, it is too early to shift towards a bullish sentiment.
After the Corona V-top, the price of EUR/AUD seems to slow down as it’s approaching the long-term support/resistance level at 1.66.
The level held as resistance multiple times before and now is the first time the price is back at the level after the last breakout.
The Trend Rider sentiment is still bearish and, therefore, blindly trading a support bounce is not recommended.
Today’s economic data out of the Eurozone shows a sharp decline in GDP data and confirms the bad shape the economy is in right now. This may add further bearish pressure and lead to a break of the long-term support levels. Thus, a real confirmation of a momentum shift is required before traders are going to turn bullish.