Forex market sessions

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.

On Tuesday the 19^th of February, trading on the EURUSD pair started from 1.1310. It dropped to 1.1275 by midday before undergoing a sharp upwards reversal to reach our target of 1.1341. It then pressed on to hit 1.1355 before retreating to close the day below the newly broken resistance. The level to which the pair corrected (1.1341) is, first of all, the intraday high from the 13^th of February, and secondly, it coincides with the 38.2% Fibonacci level of the decline from 1.1514 to 1.1233.

On Monday, trading on the EURUSD pair closed up by a decent amount. By close, the euro had appreciated by 0.11% to finish the day at 1.1308. The single currency has started the week by attempting to reverse the downtrend started at the beginning of February. The euro has lost 1.2% against the dollar since the beginning of the month. We could see this trend reverse in the coming weeks, and the euro may rise as far as 1.1340.

The EURUSD pair hasn’t moved much over the last 6 days. We are locked in a sideways trend, but that doesn’t mean that there’s no action to be seen. Everything is taking place around a crucial long-term support, so it’s no surprise that buyers and sellers are fighting for every single tick here.

Worse than expected data from the Eurozone made its mark on the EURUSD pair, gold is looking down at a crucial support again, and after disappointing data from both currencies, the EURGBP pair is adhering to the technicals.