The global aversion to the risk continues. President Trump easing his policy on the trade war with China has not helped much here. The inverted yield curve is doing its job in spooking markets. In today’s analysis, we will focus on the EUR as we have a nice downwards movement here caused by one of the ECB members. In his interview, Olli Rehn from the European Central Bank said that the ECB "will announce a package of stimulus measures at its next policy meeting in September that should overshoot investors' expectations." That was enough for the euro bears to increase their selling activities. EUR plunged.
We were expecting bigger movements on EURUSD on Wednesday. This didn’t happen thanks to the sideways trend locked inside of the triangle pattern. EURUSD decided to break the lower line of this pattern, which was in line with the fundamental comments from the ECB official. Yesterday, we got a small flag and another downwards leg. The pair has paused for the moment, but considering the general sentiment, we are anticipating a further slide here.
EURGBP has been going up for the past 14 weeks in a row! It seems that the time for a correction has finally come. This is a good place for it as we are on a long-term horizontal resistance. Sellers obviously got a boost from the comments from the ECB and they needed that as the situation on GBP has not been encouraging for those wanting to purchase Sterling. The correction should aim for the mid-term support around 0.91
Last up is EURCAD, where we also have a good bearish setup. A few days ago, the pair successfully tested the combination of horizontal and dynamic resistances. The rate went down, giving us a sell signal. In addition to that, EURCAD is currently attacking the mid-term support around 1.477. If we close the day below the yellow area, a sell signal will be triggered.