How Could You Trade Key Euro Pairs This Week?

How Could You Trade Key Euro Pairs This Week?
February 23, 2015

Greece was the highlight of last week as discussions regarding debt restructuring, how much is going to be accepted, how much isn’t, etc, took over the headlines. As a consequence markets reacted to any news related to these negotiations.

Eurogroup met at the starting of last week and then again on Friday. In between these meetings, financial streams were dominated by deal/no deal headlines. This meant only consolidation for EUR related pairs.

Let’s look at these at these pairs in greater detail.

I will start with the EURUSD, the most liquid of them all. There is a clear contracting triangle that is developing on the daily chart. I would say that not even wave a of the triangle is completed. This makes any dip below 1.1250 a buying opportunity targeting 1.15 and having a stop loss below the most recent lows in the 1.11 area.

The EURJPY is also consolidating, but given the headlines, the consolidation area is a bit bigger than normal. The more equity markets move to the upside, the more the EURJPY is going to be bid, therefore I am favoring longs on the pair with 138 area back in focus.

The EURGBP is a bit more complicated. The staggering UK employment data released last week showed wages growing at a nice pace and the unemployment rate dropping further, however these couldn’t stop the pair from showing 7 years lows.

However, I would be cautious as on the daily chart the move to the downside is forming a possible falling wedge and we all know this one is bullish by the time the 2-4 trend line is broken.

It is not the case yet, so we may have approximately a week or two of challenging both the downside and the upside, but from these levels I only want to by the EURGBP cross, for a move back above 0.76 level.

It remains to be seen if markets will confirm these analysis.

You can trade currency pairs with Binary Options and Forex. Open a free trading account with any of our approved brokers today.

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


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