Euro commodity crosses take back lost territory
Euro Commodity Crosses
EUR/AUD
Euro bulls retaliated against the Australian dollar positions
with a vengeance that only the battered currency can posses and as they pushed
the cross against the 1.6045, a level marked by the 23.6 Fib of the
1.7712-1.5532 AUD rally. As the price action temporarily stalls and euro longs
consolidate their gains, a further break of the Australian dollar defenses will
most likely see the cross head higher toward the 1.6129, a defensive position
established by the Australian dollar bulls during the August 25 daily low. A
sustained momentum to the upside will most likely see the euro bulls overrun
Australian dollar positions and push the cross toward the 1.6294, August 9 daily
low. Indicators signal trendless market conditions with ADX below 25, while MACD
is sloping upward toward the zero line and momentum indicator is treading above
the zero line. Oscillators remain in a neutral territory thus giving the euro
bulls plenty of room to maneuver.
EUR/CAD
Euro longs launched a decisive counterattack against the
unsuspecting Canadian dollar longs and pushed the cross back above the
psychologically important 1.4000 figure. A further move to the upside will most
likely see the euro bulls push their way toward the 4647, a level marked by the
50-day SMA, and with sustained momentum taking on the Loonie offers around
1.4773, a level marked by the 50.0 Fib of the 1.2569-1.6978 EUR rally.
Indicators signal an existence of a maturing trend with ADX above 25, at 32.44,
with both oscillators treading in a neutral territory, while momentum indicator
is crossing above the zero line with MACD sloping upward below the zero line.
Sam Shenker
Sam Shenker is a Technical Currency Analyst for Forex
Capital Markets (FXCM). Sam is the author of the Daily and Weekly Technical
Research reports at FXCM. His reports include: Daily Technicals, Weekly Crosses
and the Weekly Chart Pack. Prior to joining FXCM, Sam spent a number of years on
Wall St trading equities, equity derivatives and futures. He also specialized in
research and analysis of high yield bonds, corporate bankruptcies,
restructurings, reorganizations and venture capital.