Hello.

Another pair we keep an eye on is the EUR/JPY. We saw (and continue to see) range trading throughout the Asian session as we come up on the opening of the European session.

As we’ve seen before, when a currency pair trades in a range like this - the longer it trades in a channel, the more significant the potential breakout will be.

135.70
135.15

A break above/below and spread away could signal a potential signal in direction and trade.

Good luck and for those of you waiting for our EUR/USD outlook, we’ll have it for you soon enough.

Happy trading.

Cheers.

Hello.

The EUR/GBP seemed to be a currency of interest so let’s head back to that particular pair and see what has unfolded thus far. You can refer to our post on this pair from October 6 here.

Although the long term remains potentially bullish, we can’t ignore the steep down movement we’ve seen in the past week.

If this pair retraces back up, look for it to test the .9220 - .9280 area.

The key price level you’re watching for is the recent low of .9114. If it closes below that then breaks away, then look for a continued movement down before any type of retracement bounce back up.

Happy trading.

Hello everyone and welcome back. We hope you all had a good trading day last week Friday.

We’re going to skip the EUR/USD today and pull the EUR/GBP. Thanks to Sanio and Constantin for submitting in their comments so I’ll post the analysis today.

The overall trend appears to still be very bullish. The question is: What is the shorter time frame analysis?

Although the overall trend is up, take a look at our 1 hour chart. We recently saw a top at .9300 and then retraced down to what appears to complete Wave A. We then moved up in a potential Wave B.

So, if this is correct, then look for a short term (sell) target of .9084 - .8860 (Wave C). We know this is a broad range but we’ll be able to analyze further as the market progresses.

However, keep in mind the overall trend is up so a break of .9300 will mean a continuation of the uptrend.

So, if you’re long the EUR/GBP, depending on your own analysis and money management, be sure to protect some pips. If you’re not in this market yet, then conduct your own analysis and make your own decision about entering this market now or continue to wait. 

This shorter term analysis seems to collaborate with the daily chart as it appears we’re in a Wave 3 up heading into a Wave 4.

We hope this helps you with your own analysis of the EUR/GBP and good luck with trading. We’ll see everyone again shortly.

Cheers.