Monday for most currencies ended the strengthening of the U.S. dollar. Against the general trend of moving European currency rebounded slightly after a significant fall. So far, there is a reduction in long positions in risky assets and currencies, market participants expressed a preference for the dollar.
The currency pair EUR/USD finished the trading session on Monday, rising prices. The European currency closed just above 1.3400 against the U.S. dollar. In the absence of news and economic data pair EUR/USD moved under the influence of technical factors. We can see that the pair rebounded from lows rolling back to the resistance level 1.3400, which inhibits further growth. Given the negative situation with the euro, the currency pair EUR/USD remains nothing but a drop. At the moment, the euro is trading lower, and in the long term, we expect further fall to the level of 1.3300, where the level of support that the bears should be enough to push the euro even lower down to the level of 1.3200 .
There is a chance of education and flat market, after a sharp decline in the euro, with EUR/USD may go into consolidation. In this case, we are likely to see the price range with boundaries at levels 1.3400 - 1.3300 . Also worth mentioning is that a large amount of long positions, which was seen at the peak of growth of pair EUR/USD, decreased by more than 70 %. In other words, traders and investors have closed most of the positions for the purchase of a pair, which also puts downward pressure.
The British pound down for third day in a row, starting Friday. The pair GBP/USD fell below 1.6000 level and sent to the support at 1.5900 . The wide range of the pound can result if the pair breaks the level of 1.5900 and moves lower, and given the tendency to strengthen the dollar this scenario could very well happen. At best, we will see a retreat from the bottom of the range, and the currency pair GBP/USD will continue to drift between the levels of 1.6250 and 1.5900 .
AUD/USD is also significantly reduced. Australian confidently approaches the level of 0.93, which was the primary base of the previous update. Also, this level is the 50 % Fibonacci correction of the lines from the beginning of the growth of the Australian dollar. Technically very strong and important level for the pair AUD/USD. Further development depends largely on the price action in the field.Social button for Joomla