Last week NZD/USD once again met resistance in the 0.6155 area. As you can see from the chart, this area stopped the pair twice before within the recent month.
EUR/GBP lost pace
SELL 0.8900; TP 0.8840; SL 0.8920
SELL 0.8950; TP 0.8870; SL 0.8970
EUR/GBP fell despite the fact that the British pound got weakened by the news that Boris Johnson on Tuesday won the contest to be the next British prime minister increasing the odds of a no-deal Brexit.
It happened as the currency pair was long due for a correction. For now, it retraced 23.4% of the May-July advance and got to the 50-day MA at 0.8910. The next support, the 38.2% Fibo retracement level, is at 0.8835.
Last week’s candlestick on W1 is a “shooting star”. It means that it will be hard for EUR/GBP to overcome resistance at 0.9050. There’s bearish divergence on D1 - a sign that the downside correction may continue. On H4, we see a “head and shoulders” pattern. The neckline at 0.8950 is providing a closer resistance.
It’s worth paying attention to AUD/JPY. The pair has approached the resistance line connecting April and May highs.
The way EUR/GBP bottomed around 0.8700, then rose above 0.8870 and jumped from the trendline support at 0.8910 shows that the pair possesses bullish momentum.
While biotech companies are struggling to find the vaccine, investors make bets who’ll win this race.
There are many things happening in the UK. What is the strategic outlook for the GBP?
The Australian dollar set a strong upward trend over a month. Will AUD loose its gains soon?