Significant changes were seen this past week on the major pairs including the British pound and the Australian dollar, but the euro remained in a wider range the whole week.
The EUR/USD was already in the bullish zone for the past 2 weeks where it gained more in the first half of this past week where it made a new high of 1.3812 after which it started to drop as a result of giving some bearish correction where it has completed 23% of its bearish correction for its huge bullish rally on its Fibonacci retracement scale.
The pair closed below the support level of 1.3748 on Friday where it is expected that it may plunge more in the upcoming days down to 1.3684 and 1.3667 where buyers would start entering the market again since it is the critical support level that separates the bullish from bearish channel.
On the other hand, the British pound fell all this week after testing a new high of 1.6471 and closed at 1.6303 after losing 171 points against the greenback. The GBP/USD has technically entered the short term bearish channel where it would remain a bounty for the sellers as long as it sustains below the critical resistance level of 1.6374.
The upcoming fundamentals to be released this coming week include the inflationary numbers of the U.K. economy, industrial orders expectations, unemployment rate, interest rate, and final GDP of the third quarter.
Good outcomes of these economic indicators can lead to lift the pair up once again, while the mixed data or disappointing outcomes would keep the bears pressurizing on the pair and take the price further down.
As we always suggest to our traders that trade what you see, and focus more on the technical levels rather than the fundamentals, hence it always results in profitable outcomes. The Australian dollar entered the bearish channel once again where it closed below 0.9080 after which it started falling more against the U.S. dollar, plus the Reserve Bank of Australia announced that it wants to see the Aussie at 85 U.S. cents, so it lost more and tested 0.8903 support after losing 270 points this past week.
To contact the reporter of this story: Jonathan Millet at email@example.com