The euro played well last week where it managed to gain more than 200 points where the FOMC meeting decision was the key driving force, which led the EUR/USD to test 1.3572 on Thursday. Unlike other major pairs, the euro has not given its bearish correction that is due now but the investors are waiting for the decision regarding the Federal Elections being held in Germany on Sunday.
Depending on whatever result comes out, the market may give a gap either upwards or downwards however traders must be aware of the technical levels while trading. The support levels for the pair are clustered with each other where a move below the support level of 1.3504 could take the pair down to 1.3486, 1.3468 and 1.3452. Whereas, on the bullish side, a break above its past week’s high of 1.3572 could lift the pair further up to 1.3588 1.3604 and 1.3622.
Pound May Continue Bullish Move
GBP/USD does what it is known for. It gives timely and healthy retracement. The pair has given its 50% bearish correction on Fibonacci retracement scale after giving more than 200 points bullish rally on the FOMC decision.
There is no fundamental due for the GBP on Monday so it is expected that it may continue to move based on its technical levels and go along with bulls. However, if it moves below 1.6030 then it may go on to test its strong support level of 1.5995, breaking of which could show 1.5975 and 1.5958.
On the upward side, a move above 1.6073 could result in testing the resistance levels at 1.6096 and 1.6123.
USD/JPY is currently in the bullish channel where no strong movement would be seen on Monday as it’s Bank Holiday in Japan, however a break below 98.66 could cause curtains for the pair because this is the critical level that sets apart the bullish and bearish channel.
Talking about the Aussie, it is enjoying a good recovery after falling notably in June and July and is currently hovering at around 0.9427 level. Investors can feel safe to buy it as long as the pair trades above the critical support level of 0.9371.
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