EUR/JPY printed a second hammer in a row on Tuesday as traders continue to provide support at the level. (Not to mention the rumors of clandestine buying operations from the BoJ.) The level looks solid, and could provide a buying opportunity if we get above the highs from Monday. However, this pair is massive bearish, and we believe the 108 level to be massive resistance and you should keep stops tight. A breaking of the lows of the hammer on Monday, this would signal severe bearishness.
EUR/NZD is flirting around a support area and looks like it wants to fall. The breaking of the 1.67 level would signal a move down to 1.62 in short order, and would be consistent with the "sell the Euro" theme we are seeing out there now. The breaking of the top of the Monday candle would signal that perhaps we are going to retest the 1.70 level.
Create a FREE account