EUR/USD Crashes Through Range Support as EUR/JPY Loses ECB Low

By DailyFx | June 10, 2014 AAA

DailyFX.com -

Talking Points:

- EURJPY, EURUSD hold range tops on swing higher, now lower.

- Euro complex under pressure across the board.

- Forex economic calendar lighter in North America on Tuesday.

With the 'weak hands' cleared out, the Euro market is back to trading based on current data trends, which hasn't proven that helpful for the single currency. What we mean by 'weak hands' is the group of market participants who were trading short Euro specifically for the ECB's meeting on Thursday - and who were undoubtedly knocked around after the Euro's furious rebound after Draghi's press conference.

Yet with significant range tops in the major EUR-crosses having held yesterday as resistance (very cleanly, to be noted), we've now witnessed a complete reversal - of the ECB reversal. The EURUSD has pivoted back through $1.3585, queuing up another shot for a move through $1.3500 so long as the USDOLLAR Index holds above 10495 today.

Elsewhere, EURJPY has broken its post-ECB, post-NFP swing lows near ¥138.65, and in light of the observation that the JPY-crosses haven't traded that tightly with surging global equity markets, we suspect that even a light down draft in risk sentiment could stoke a disproportionate move of strength by the Yen.

Read more: ECB Provides Levity to Euro but EUR/JPY, EUR/USD Hold Ranges

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center