Despite the large number of applications on sale Friday, on Monday opened without major currencies up, except perhaps that was the Australian dollar. To date, the market is sluggish, movements slowed down and the currency traded in a narrow range. However, still during the Asian session was seen a surge of activity, such as EUR/USD pair dropped sharply by more than 50 points, but also quickly returned to its previous state. Today we expect a small news section on the euro, the pound and the data in the evening on the U.S. dollar.
The EUR/USD broke through the 1.3500 level on Friday and at the moment the European currency is traded in the region indicated earlier by the support. During the Asian session, EUR/USD managed to sink to the level of 1.3450, but it quickly farmed out back, and she returned to the level of 1.3500 . As we see the decline of the euro slowed and may stop altogether. If you look at the hourly chart, you will see that the bears who like to push the single currency below 1.3450 failed, bulls actively bought euro. As a result, the daily chart today's candle is like a "hammer", one of the Japanese candlestick formations. The emergence of "hammer" at the end of the downward movement indicates a trend reversal. But as the day has not yet completed the candle body can change its appearance. At the moment, the euro is in a narrow range with the boundaries of 1.3500 and 1.3450 .
The British pound is largely similar to the dynamics of the movement with the euro. The fall of GBP/USD pair stopped the support level 1.5900 . The actual level of 1.5900 is the last constraint, from a technical point of view, the factor for the British currency, overcoming it can result in significant reduction in pairs, up to the level of 1.5700. Today is expected to yield an index of business activity in the construction sector, which will have a direct impact on the GBP/USD, analysts predict that the rate will remain at the same level of 58.9 . On the daily chart the significance of 1.5900 support is increasing, as you can see, the pound experienced a wide range, the upper limit of 1.6250 , 1.5900 and the bottom, so if the market situation does not get worse, you should expect an increase in prices.
The Australian dollar has opened up and began to actively move to the level of 0.95 . Market participants are still howling around this level, trying to keep the AUD/USD from falling, and to return it above the specified level. Australian forces and given the economic data released today, which were better than analysts' forecasts. Support level shifted to 0.9220 and 0.95 level acts as a resistance.
