The EURUSD Has to Overcome the 25th Figure
Despite the sufficient number of negative factors, which maintain the downward trend of the euro, the single currency was showing a moderate upward trend all the last week, gradually recovering from the lows of 1.2247. The resistance around 1.2500 is continuing to keep the bulls pressure, but their persistence may still lead to its breakout. In this case, the formation of a temporary basis should be expected, the evidence of what will become the breakout of the resistance around 1.2600-1.2623. In turn, the inability to overcome the 25th figure may lead to another wave of sales of the EURUSD with a possible breakout of lows. Thus, we should watch the “behavior” of the pair around the 25th figure. Perhaps, data about consumer inflation in the Eurozone and/or the results of the Fed’s meeting published this week will contribute to its breakout.
The GBPUSD Stays Below 1.5766
The GBPUSD was traded mixed last week, gradually moving away from the lows of 1.5541, which were reached in the beginning of the week. The recovery of the pair was limited by the resistance around 1.5757. In general, a rebound from the mentioned above lows is a favorable factor for the pound, but as long as it is traded below the resistance of 1.5766, the risks of the decline resumption will be kept, so only its breakout and the ability to consolidate above will indicate about readiness to continue the ascending correction. Its next target, in this case, will be the resistance around 1.5873.
The USDCHF May Drop to 0.9555
The US dollar paired with the Swiss franc after testing of 0.9817 was under pressure all the last week, having declined to the support around 0.9618. The weekly closure of the pair was slightly above this level, it should be considered as a wake-up call for bulls, as well as the the inability of the dollar to go back above 0.9722. Thus, the risks of the breakout of the current support and the dollar’s decline towards 0.9555 are pretty high. The ability of the franc to continue the recovery will depend on its ability to overcome this support, and until that time the risks of the dollar’s growth resumption will be kept.
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The USDJPY May Resume Growth
Last week the Japanese yen also recovered against the US dollar, amid what the pair went back below the psychological level of 120.00 after testing a fresh high of 121.85 and fell to 117.47. The recovery attempts were limited by the resistance around the 119.43-119.91. Theoretically, the current minimum may become the basis and the dollar will resume the growth again, breaking 120.00, that will lead to a return to 121.85. The inability to break through 120.00 will increase the risks of the passage of 117.47.
