The Euro continues to drop, as fear of an escalating crisis pressure the currency. Price has been moving down in a wide price channel. If price can penetrate the lower channel line, that would indicate a panic selloff is ensuing. Otherwise, traders may look for opportunities to trade bounces off the channel lines, particularly the upper line.
The EURJPY selloff is now picking up speed, after breaking out of a multi-week consolidation. Last week, prices briefly consolidated around 111.50, a short-term support level, but are now marching lower. The first support level is near 109, and if the trend can pick up speed, there is a good chance it will retest the 106 support level in the near future.
The Canadian dollar continues to hover near parity, but is showing short-term weakness, as the pair flirts with 102.50. Three tests of this level have failed to break through over the past week, but the pair may relent to the battering, triggering a rally, so caution is advised.
Written by bforex.com