The past week proved to be bearish for the Euro as the pair entered the short-term bearish channel and continued to move in it, but in a zigzag direction. In other words, the bulls kept fighting back with the bears that allowed the pair to lose less, but still it couldn’t break its resistance levels and gave a closing at 1.3750.
The pair would remain bearish as long as it does not cross its cluster of resistance levels and move above the major resistance area of 1.3839, which is around 90 points away from its current price. However, the traders must look forward to some interesting economic indicators that are to be released this coming week that include, CPI flash estimate, Euro unemployment rate, retail sales, and Ecofin meetings.
Ok so the new month is here already and the big fundamentals for the UK economy are ready to be released this coming week, which include manufacturing PMI, construction PMI, and most importantly the services PMI.
The British Pound bounced back from its important trendline support from 1.6466 after which it gained 150 points the whole week and ended up closing at 1.6638 which is in the short term bullish region. The investors would feel safe to keep their positions long if it stays above the 1.6560 major support level. However, we need to look into the outcomes of above mentioned fundamentals that can change the direction instantly and may be for the whole month.
Forget about Trendlines, Fibonacci scale, or any other tool. If you are getting some sharp indication from candlesticks through price action theory, simple go for it because Aussie favors price action like anything. The Australian dollar added nearly 270 points against the greenback this past week and rallied up to the top of 0.9293 and gave a closing at 0.9250.
Chinese manufacturing data is due this week that would impact the pair sharply, also the interest rate of the Australian economy, building approvals, retail sales, and trade balance figures are going to be released this week which could shape the direction provided one sided data comes out.
To contact the reporter of this story: Jonathan Millet at email@example.com