The main question of the week is: will the global descent stop? Will we try to find signs of the end of descending trend or even the deployment if we are lucky enough? No, we will be looking at graphs without bias.
Euro which has looked pretty good compared to USD, fell last week, breaking down the support of 1.3300 and ascending slant line of the trend in the same place. There is a very good signal for selling the EURUSD pair. Especially if one looks more closely it will be possible to see a classic graph figure “Head and shoulders” which was formed in a daily graph from the middle of January until the middle of February.
Interestingly enough the rebound of neck line coincided with the rebound of support of 1.3300 (in fact the support was the neck line). Based on classic graph analysis EURUSD pair must pass after the rebound of neck line the minimum of head height.
But as it is a theory one should rely on reaching the level of support of 1.3000. But with these signals is it worth paying attention to the stop of the pair and the fact that it found the support and rebounded from level of 1.340, drawing after the last day of tradings a big dodji candle, which represents the uncertainty of the market? Of course it is worth doing it! That is why it is safer to begin the sales after reaching the support of 1.3140. In case the level is not broken down the consolidation or correction are possible.
And the GBPUSD pair can’t find its support. A good level 1.5157 gave a little hope for stopping the fall, but the lowering of credit rating of Great Britain destroyed all the achievements and will continue pushing the pair lower. There is no specific level until 1.4500 which will be able to stop the fall.
With such leaps yena stopped its fast weakening and is in strong consolidation of triangle shape. It is safe to say considering the current situation that it is useless to wait for miracles from USDJPY pair, one should wait for breaking down the consolidation, meanwhile there are GBPUSD.
A very important week is ahead for gold, which almost reached in its falling a serious support of 1545, by making its descending channel faster. One should determine wither it is possible to renew gold quotations. But to ask this question it is necessary for the 1545 level to resist, since there is a possibility that gold can continue descending during the next week.
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