Morgan Stanley is technically bearish on EUR/USD, EUR/AUD, and EUR/CAD.
In EUR/USD, MS notes that it has crossed and stayed below the key 1.35 level (a retracement and previous low), suggesting that there is room to move lower.
"Over the medium term we look for a move lower towards the 38.2% retracement level at 1.3250. This is just above our 1.31 year-end target. The risk to our bearish view is a move back above the recent high at 1.3698," MS projects.
In EUR/AUD, MS notes that it has hit the 38.2% retracement level of the move from the 1.16 low in July-12 to 1.58 high in Jan-14, at 1.42
"We now look for moves lower, initially towards 1.40, signalling a further move to the 61.8% retracement at 1.32," MS adds.
Finally in EUR/CAD, MS notes that it has developed a similar pattern to EUR/AUD.
"EUR/CAD is approaching the 38.2% retracement level at 1.4263, which is also just above the bottom end of the current trend channel. A move below here would give a further bearish signal," MS argues.
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