The past week remained a sluggish one for the major pairs except the big event that took place on Wednesday where the Federal Reserve announced to taper the stimulus plan by $10 billion from the month of January, next year.
The euro was trading in a bullish area for the past 2 to 3 weeks where it lost dramatically against the greenback after FOMC meeting minutes and closed in the short term bearish channel at 1.3674 on Friday. The pair is expected to remain good for sellers as long as it trades below the critical resistance level of 1.3716.
The upcoming week would be quite sluggish for the overall market as there are holidays for Christmas and the trading is expected to remain thing during those days. However, the French consumer spending data is set to be released on Monday where a good outcome could take the pair up to 1.3703 and 1.3710.
The GBP/USD remained in a very tight range on Friday and closed just below the critical level of 1.6350, trading below which is good for sellers while a sustainable move above this level would allow the bulls to re-enter the market and take it up to 1.6393 and 1.6410.
The only fundamental to look forward this week for the pound is the BBA Mortgage approvals, where a better than expected outcome would hint to the investors that there is good progress in the housing sector as more and more mortgages are being released due to a good demand, and that is of course due to good consumer spending in the market.
Take a chance to sell it heavily, once again. Yes, the Australian dollar gained later in the U.S. session on Friday where it bounced back from the resistance level of 0.8930, where traders are suggested to take risks here and enter as short on the pair while keeping their stop loss at tight levels at around 0.8962. Provided it remains below 0.8945, the pair is bearish and good to sell.
To contact the reporter of this story: Jonathan Millet at email@example.com