The major currency pairs plunged yesterday but later on in the U.S. session, those losses were offset by the bulls but the opportunity to sell these pairs yet again remains there. The reason being that the euro, pound, and Aussie are technically in the short-term bearish channel where sellers may enter again on the tops they make today, since the traders are looking forward to FOMC meeting minutes due today in the U.S. session.
The euro lost nearly 50 points against the greenback on Tuesday, which it regained later on and is currently trading at 1.3772 in the Asian session here on Wednesday. The resistance levels are clustered close to each other where the bulls might not be free enough to lift the pair unless any strong fundamental comes in favor of the pair.
The break above 1.3800 could take the pair to 1.3813 and 1.3827 while the break below the support level of 1.3725 could drag it down to 1.3711 and 1.3696.
The British pound has given its 38.2% bullish correction on a Fibonacci scale of the bearish move it gave during the past week, but each top it makes today would be considered as an opportunity to sell since the critical resistance level is there at 1.6349 that separates the bearish zone from the bullish zone. A move below its today’s pivot point 1.6268 could lead the pair to test its next support level at 1.6234 and then 1.6217.
The Australian dollar has remained under pressure for the past whole week and still is, but yes it is one of the easiest pair for swing traders to trade since it sticks to the direction it takes and ends up achieving the target levels if it has to.
The AUD/USD is extremely bearish and is looking forward to drop more provided no other fundamentals could make the U.S. dollar weak against the major currencies. Let’s see what we have today in the FOMC meeting in the U.S. session, where the decision of tapering could lead to a sharp fall of these major pairs.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org