Forex market reviews

The bears are holding all the cards on gold, EURJPY looks set for a big upswing, and the cable could go either way.

On Thursday, trading on the EURUSD pair remained in a sideways trend, moving rather haphazardly within a range of 1.1320 to 1.1364. Wednesday’s intraday high of 1.1371 has provided us with a new resistance level, which must be broken if there’s to be any chance of further growth. On Thursday evening and Friday morning, the EURUSD pair has been seriously testing the lower boundary of the upwards channel. If we get a breakout here, we expect the pair to drop towards 1.1233.

The FOMC minutes provided USD with a short-lived boost. In addition to this, today we’ll be looking at two currency pairs that involve the euro, as well as one that involves 2 safe haven currencies.

On Wednesday the 20^th of February, trading on the EURUSD pair entered a sideways trend within a range of 1.1325 to 1.1370, revisiting the high from the 6^th of February in the process, which is at the top of this range. This trend continued into Thursday morning’s trading, where the pair dropped to 1.1330. All the while, the pair has remained within the confines of the newly-formed upwards channel that appeared at the end of last week. The immediate growth target remains at 1.1373, which marks the 50% Fibonacci level of the latest decline. However, the pair could test the lower boundary of the channel on the way to this target.