Forex market sessions

On Monday the 21^st of January, trading on the EURUSD pair closed slightly up. The pair slid to 1.1357 during the European session, before partially recovering the day’s losses in the US session on account of the country’s national holiday. The bears have been dominating the market since breaking through 1.1514 on the 11^th of January. Over the last few days, the bulls have failed to make their presence known during the rebounds.

Last week, all the majors lost ground against the US dollar except for the pound. The biggest loser against the greenback was the Kiwi (-1.35%), followed by the Swiss franc (-1.17%), yen (-1.11%), euro (-0.93%), Aussie (-0.77%), and the Loonie (0.01%). The pound, on the other hand, posted a rise of 0.27%.

On Wednesday the 16^th of January, the euro fell slightly against the US dollar and the British pound. It remained under pressure following the comments of ECB head Mario Draghi, who told the European Parliament that the recent economic performance of the eurozone was worse than expected, and that the economy still needs substantial stimulation in the face of uncertain external factors.

EURGBP finally ended the sideways trend that had been present on the chart since the 7^th of December. The pair was locked inside a rectangular pattern (green lines) with a tight range of 120 pips. Traders finally decided to head south, and in terms of the risk-to-reward ratio, this could provide a great trading opportunity.