A big move in a major currency often throws up decent levels in the crosses
My view on technical analysis in cross pairs is that I don't assign as much strength to the levels that I would in the major. However, the tech does play a big part and can be a deciding factor for the current move in the major
Just having a quick flick through the charts there's a few levels worth looking at in EURAUD and EURCAD
EURAUD is looking at some longer term levels, the first of which is the 55 wma at 1.4427
EURAUD weekly chart
Having found support initially at the 50 fib and then the 200 wma below, the pair is approaching the broken July 2012 support line once again at 1.4185. With the 100 dma at 1.4195 and old 38.2 fib at 1.4214 all around the area too it marks a decent resistance area before a look at the 200 dma at 1.4390 and then the 55 wma
The cross has been given a kick lower by the move in the aussie dollar but it looks to be clawing it's way back up today in the face of strength in AUDUSD. If you think there's more to come from the RBA and that the euro rally is really still a bolt out of the blue these upside levels will look enticing
Over to EURCAD and the weekly chart features once more and a rather strong looking 200 wma at 1.3751
EURCAD weekly chart
The 200 wma is also joined by the 55 mma to the pip so it's a very good looking tech level
Above that the old 50.0 fib at 1.3855 and older S&R levels between there at 1.3885 provide another area to test the mettle of the euro's current strength. With the BOC coming off of dove mode, the euro strength could bring those levels into play band set up a short opportunity if they turn hawkish. There's a good technical case for a short build against the 1.3750 area and then the higher levels. A break of 1.3885 (might as well stretch it to 1.3900) will be the cue to bin it and then look for a retest of the broken levels for longs
I don't look at the crosses as often as I should but when I do I prefer to trade off of the longer time frames and tech
