The EURUSD Drops to Support at 1.3239
The EURUSD failed to overcome the resistance at 1.3295 and the pair forced to retrace to the support at 1.3264. After another unsuccessful attempt to break the upper limit of the range, the support has been broken through while the euro dropped to 1.3239. Thus, the limits of the range that occurred as a result of entering a consolidation phase of the EURUSD, expanded. The pair has been neither overbought nor oversold. The Parabolic SAR is lower than the price chart yet.Some important events planned for the current week can influence currencies momentum. That is why it could be senseless to make conclusions based on the current situation of the pair and build up trading strategies. Since the major market participants are waiting, it is better to follow them and refrain from taking action.
The GBPUSD Corrects to 1.5315
The similar situation with the EURUSD pair has been observed in the GBPUSD, as well. The highs reached by the pound last week has not been overcome. Such market situation forced the bulls to retrace to the support in the area of 1.5376 and it was come across soon. So, the pound decreased to 1.5315. It is not the point to speak about trend switching due to decreasing is happening within the frame of consolidation after increase. Later during the week, the Bank of England will announce its decision on interest rates and the terms of the asset purchase program that may affect the dynamics of the pound and make significant adjustments to the current situation of the pair.
The USDCHF Trying to Recover
The bulls on the USDCHF were unable to break through below the lows of the last week. The bulls have used such situation in their favor and tried to recover control under the situation. They managed to overcome the resistance at 0.9307, but when they tested the 0.9323 mark they lost their enthusiasm and the pair occurred under pressure. Thus, consolidation has been observed while a downward trend continues. The U.S. dollar should increase and consolidate its positions above the 94th figure to be in force of the upward momentum again.
The USDJPY May Increase to the 99th Figure
Yesterday the Japanese yen tried to continue the downward correction started last week. The U.S. Dollar did intend to decrease below the support level of 97.63, but it was trying to increase higher at this stage. Till now the dollar has experienced the 98.46 marking. Despite the negative close for the dollar it could recover its positions to the 99th figure broken by the bears, where theoretically selling positions should be opened. Increase above 99.70—100.00 will mean recovery of the uptrend movement.
