EUR/GBP: Right Shoulder Of H&S Top; EUR/AUD: 3 Bearish Signals
EUR/GBP: The essence of a head and shoulder top is present. Spot continues to roll over to form the right shoulder. Significant support that needs to break to confirm the top includes a nearby trend line, 50wk SMA and neckline from .84600-.83600.
A closing breakdown confirms the top and creates downside targets of .79600 and .78700.
Resistance: .86400 and .88500.
Spot has fallen to two-year lows with nearby support at 1.37500. We expect an oversold recovery, and we think it should be sold, especially if it reaches the 1.40- 1.41 resistance area.
Support: 1.37500, 1.34900, 1.34500. Resistance: 1.40900, 1.42700.
A broad triangle top, major trend line breakdowns and bearish moving average crosses are bearish for EUR/AUD. A full target equates to spot reaching 1.34500.