Euro Tumbles during Afternoon Trading

The euro fell against virtually all of its main currency rivals during the European session yesterday, after pessimistic comments from German Chancellor Merkel led to risk aversion in the marketplace. Turning to today, several potentially significant US economic indicators are scheduled to be released. Traders will want to note the results of the Unemployment Claims figure at 12:30 GMT, followed by the Existing Home Sales and Philly Fed Manufacturing Index at 14:00. Should any of the indicators show growth in the US economy, the euro could see additional losses against the US dollar in afternoon trading.

EUR/USD

The Williams Percent Range on the weekly chart has fallen into oversold territory, indicating that this pair could see an upward correction in the near future. Additionally, the daily chart's MACD/OsMA appears to be forming a bullish cross. This may be a good time to open long positions.

GBP/USD

Most long-term technical indicators place this pair in neutral territory, meaning that no defined trend can be established at this time. Traders may want to take a wait and see approach, as a clearer picture is likely to present itself in the near future.

USD/JPY

The daily chart's Slow Stochastic has formed a bullish cross, indicating that this pair could see an upward correction in the near future. Furthermore, the Williams Percent Range on the same chart has dropped into the oversold zone. Opening long positions may be the wise choice for this pair.

USD/CHF

The Relative Strength Index on the weekly chart is approaching overbought territory, indicating that this pair could see a downward correction in the coming days. Furthermore, the daily chart's Williams Percent Range has crossed above the -20 level. Traders may want to open short positions for this pair.

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