Euro Set to Complete Correction
The euro bounced back from the its support area at 1.3100 after which it closed at 1.3174, which is just below the mild resistance level of 1.3190. However, the EUR/USD would be aiming to complete its bullish correction for the huge bearish rally it witnessed last week.
The first level that it would target would be the 38.2% Fibonacci retracement level that is at 1.3225, after which it would go on to test the 50% retracement level that is exactly at 1.3263 critical resistance level.
This retracement could be seen if the pair manages to move above the mild resistance level of 1.3196, but the pair would remain bearish as long as it hovers below 1.3263. There is no such fundamental due for the euro on Monday, where it is expected that it would continue with its technical move and bullish correction has good chances to happen.
On the other hand, if it breaks Friday’s low of 1.3112 then its next move would take it down to 1.3086 and 1.3064, breaking of which could show 1.3043.
Double Top on GBP/USD
British pound is standing firm against the greenback where it has a room to retrace back a little where it could test 1.5586 and 1.5560, provided it breaks the support level of 1.5613. Buyers would remain in control as long as the pair trades above 1.5540 support area while on the other hand if it moves ahead of Friday’s low of 1.5670 then its next targets would be 1.5685 and 1.5707.
One important factor for risky takers here is that there is a double top at the resistance level of 1.5670 that the pair failed to break twice. If someone is looking forward to maximize the profit through selling, then the chance could be taken by setting the stop loss just a few points above this resistance area.
The precious metal remained highly volatile past week where it came back from the 1430 region back to 1355 and closed near the 1391 area, where technically it has entered the bearish channel once again.
The Non-farm payrolls data helped it move up from the 1355 region, however, sellers could still ride the gold market as long as the metal does not move above and sustain above the psychological resistance level of 1400 and 1407.
Hints from the FED are being the center of attention for the investors as to whether tapering would be done or not. Only time will tell.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org