How far north can the Euro go before falling again?
The EUR/USD pair began the week with a technical rebound after falling to the psychological level of 1.28, the rebound can continue until the nearest level of resistance of 1.30 which in our opinion seems hard to reach for investors who have long positions. One should not forget that euro has its own set of problems and the power of US dollar which is characterized by renewal of American economy will be lowering the euro in the long run. US dollar rally will continue most likely that is why the correction of the pair of EUR/USD gives the opportunity to traders to open short positions. In our opinion the most important goal for the pair is the level of 1.27, reaching of which can throw the European much currency lower.
Australian dollar is exploring the bottom.
AUD/USD pair reached the base of its diapason after falling abruptly during the last week. Unsteady renewal makes the market for the pair AUD/USD very vulnerable at the moment, and we think that the market is going to try the level of 0.9650 which is the support. The fall of the price of the gold is lower than the level of 1400 dollars for an ounce which only confirms the power of the descending trend for Australian dollar and ,meanwhile the US dollar feels confident on a currency market the Australian will have to cede the positions for a while. In the near future the traders will have to watch the pair near the noted area (0.9650), and trade, by using the behavior of the price as a signal for opening the positions, sell at the breakdown and purchase at forming the rebound.
USD/JPY rate is higher and higher.
USD/JPY pair has a strong ascending tendency and this tendency will stay. This situation makes traders with short positions search for more interesting offers. The market will continue ascending during a long time, yen rate did not make a decent influence on economic indicators of Japan, that is why one may assume that passing the level of 100.00 for the pair USD/JPY was just the beginning of the work of the Bank of Japan. Our prediction – the pair will achieve the level of 110.00 during the following several months. At the moment the growth of the pair is restricted by resistance of GAP which was formed after opening the markets on Monday, use the bursting of this level for opening long positions.
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