Breakout Awaits the Euro

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Breakout Awaits the Euro
Breakout Awaits the Euro

Breakout Awaits the Euro

The euro witnessed some indifference from the side of investors where they awaited for a strong fundamental to happen, which didn’t. Therefore, it remained in wide range of 100 points the whole week where it failed to break the resistance area of 1.3560 and the support level of 1.3460.

The pair closed at 1.3519 on Friday where traders are now looking forward to some serious fundamentals due this week, but first we have to see what German Retail sales data and European Inflation flash estimate levels come out to be.

Provided the EUR/USD makes a move below 1.3495 then it would head down to test 1.3485, 1.3472 and then 1.3452 whereas a move above Friday’s high of 1.3563 could life it further up to 1.3578 and 1.3595.

Pound Back in Business

The British Pound moved back up in the bullish zone last week after taking a healthy bearish retracement of 2 weeks old bullish movement that came in result of the FOMC meeting minutes. Last week, the BOE Governor Mr. Carney stated that the U.K. economy is in a satisfactory shape and does not need further stimulus to pump it up. The statement was taken positively by the GBP investors where bulls took over control the pair as it gained massively against the greenback, taking it up to 1.6138.

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The pair is in a strong bullish and stable condition, where it would remain a good opportunity for the buyers as long as it trades above the critical support level of 1.6065.

Caution on Aussie

After enjoying a very healthy and bullish month of September, the pair is back in its bearish channel where it closed below the critical level of 0.9410 all three days consecutively last week. It closed at 0.9318 which is well below this important level, so its outlook remains bearish where it would be good for sellers as long as it trades below 0.9410.

If it manages to break Friday’s low of 0.9300 which was its psychological support then it may head downwards where its next targets would be to test 0.9290, 0.9279 and 0.9258. This week would be very important for the Aussie as investors are eyeing on important economic indicators including Australia’s retail sales figures, interest rate, building approvals, and trade balance.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com