FX.co ★ Technical analysis and trading recommendations on EUR against USD & YEN for March 06, 2015

EUR/USD

The euro fell below 1.10 for the first time since 2013 hitting a twelve-year low against the USD. All technical indicators favor bears. The pair looks extremely bearish for another 200 pips initially. Eventually, it can go below 1.0000. At yesterday's ECB press conference in Cyprus, Draghi announced Public Sector Purchasing Program worth of EUR 60 bn per month. This program is going to start from Monday March 09, 2015. Greek banks gets emergency assistance worth of 500 mln euros. Draghi made a comment that purchases are limited to bonds equivalent to the ECB's deposit rate 0.2%. Germany's factory oders disappointed traders. New orders in January 2015 went down to seasonally adjusted –3.9% in the previous month.

Upcoming events: US employment data is released today. Traders eye this essential data. As for the euro, German industrial production and Revised GDP are due.

Technical view

Ahead of US crucial jobs data, the pair lost its ground at yesterday's session and trading in a muted mode at the Asian session. We still recommend selling with targets at 1.1100, 1.0970, and 1.0930. The pair made a low at 1.0988. The broken support base turned into the resistance zone between 1.1260 and 1.1280. The prices are closed and trading far below hourly moving averages. Until prices close below 1.1150, use every rise to sell. The weekly resistance is found between 1.1210 and 1.1260. Forgot buying, until the price closes below 1.1260 on a positional basis. At yesterday's session, we recommended fresh selling below 1.1040 with targets at 1.1000, 1.0990, and 1.0930. The pair made a low at 1.0988 waiting for the rest 1.0975 and 1.0930. The near-term target seems at 1.0760.

Resistance: 1.1100, 1.1125, 1.1160.

Support: 1.1160,1.1140, 1.0990.

Trade: selling below 1.1000.

EUR/JPY

The cross broke strong support, but managed to close above it. On a positional basis, a bearish view is on play. If the price closes below 132.29, bears will drive up to 131.50. On the h1 chart, prices are making head&shoulder pattern. A h1 candle closes below 131.10 on the down side, we can expect 131.50 and 131.30. Until the price closes above 134.00, use every rise to sell. The lowest lows and lower highs have been developing on the h4 chart, suggesting more room for a downside is yet to come. On the down side, the prices formed a base support between 132.38 and 132.00. The intraday resistance is set between 132.55 and 133.60. The pair can regain upswing momentum only above 134.00. We recommend intraday fresh selling below 132.25 with targets at 132.00, 131.60, and 131.20. If the pair closes below 132.25 on a weekly basis, it can extend its downward journey towards 131.20, 130.90, 129.50, and even to 129.00. Steep fall will be triggered below 129.00 with targets at 128.00, 125.00, and even 122.50. Key levels to watch: 132.25 weekly and 129.00 monthly.