FX Board: EURUSD confirms downside break

• EURUSD plunges through 1.1000 area to confirm last week's break

• USD picture mixed as USDJPY refuses to confirm broad USD strength

• EURGBP reversed course, GBPUSD bounced a bit

• AUD pairs offer two-way risk ahead of much-anticipated RBA rate meeting

• Gold remains firm

Key developments in FX today

• EURUSD pushed lower, confirming the quality of last week's break of the 1.1050/00 zone, and this opens the way toward 1.0750 or lower. The EURUSD move tried to take USDCHF with it, as the latter traded above parity, but EURCHF downside muddled the USDCHF picture as we discuss in connection with the chart below.

• EURGBP reversed course sufficiently to give bears heart as the momentum has come out of the chart amid broad euro weakness. GBPUSD even managed a bit of a bounce today as the sterling weakness looks overplayed if general market confidence returns here.

• USDJPY dipped steeply again today after the G20 meeting in Shanghai saw Bank of Japan policy moves garnering considerable negative attention. This kept USDJPY in a lower and shrinking trading range and suddenly saw EURJPY near the lows for the cycle again on the combination of euro weakness and yen strength today.

• AUD and NZD have been weak since Friday, especially the latter, ahead of a Reserve Bank of Australia rate meeting tonight that is a bit more highly anticipated than usual, offering two-way risks in AUD pairs. Note the risk of an interesting breakdown in AUDCAD as the 200-day moving average is in play ahead of the RBA meeting.

• Gold remains firm within a very organised triangular consolidation, while silver slipped through its first support level at 15.00 and even challenged the last interesting support to keep the upside focus just below 14.75. Silver bulls need a strong bullish reversal and move back above 15.00 to get the upside back in focus (note the gold/silver ratio near generational highs.)

EURUSD

EURUSD followed through lower today after Friday's bearish close, as the chart has now opened up to the 1.0725/50 area support as long as US data this week avoid overly negative surprises. Resistance now looks like 1.0975/1.1000.

EURJPY

EURJPY is back toward the lows for the cycle, perhaps as negative G20 reverberations have some believing that the Bank of Japan will bide its time a bit before acting again and perhaps as well on JPY hedging by exporters before the end of Japan's financial year at the end of March. It's hard to believe that the yen can continue to march from one extreme to the next without risk sentiment weakening again and especially if US data brings a higher rate focus back into play.

USDCHF

USDCHF teased today with a break above parity that was the mirror image of EURUSD's selloff through 1.0900, but the strength in the franc versus the euro at times today made the break look a bit tentaive. Let's take it one session at a time as we watch the 0.9950/1.0000 zone here for the quality of this attempt higher. Note the 61.8% Fibo retracement level in play today.

EURSEK

A very strong Swedish GDP print today combined with the weaker euro saw EURSEK taking out the 9.34/35 support area. This could open up for a move to the bottom of the range toward 9.15 and lower (where, if the market mood is broadly positive, the Riksbank may need to intervene directly as it promised to do recently), if the more recent 9.25 area can't hold.