The currency pair EUR/USD has closed with a fine engulfing pattern at the end of the last trading week – forming in the supporting zone. It’s important to note that a candle has closed above the broken downtrend – possibly signifying that the asset is about to jump. The asset could move in 2 ways; either get back to the middle point of the engulfing pattern (1.0920) and then jump, or it might jump when the market opens. The currency pair could potentially target the 1.1495 level:
Latest reports by the COT CFTC confirm the fact that large operators are increasing long positions on Euro and closing the short ones at the same time. It’s probably due to unlimited purchases of the Fed’s new quantitative easing program to soften the economic blow. All in all, the Euro could jump, and large players are all going for it:
Last week the British pound pulled from the minimum of many years. It’s currently approaching two resistance levels, which might be interesting to observe. Away from the first level of 1.2270, the asset’s price might correct itself down as it did so many times before. If the downtrend begins with the second level – this might be something to ponder as well:
Cross-rate of EUR/GBP has pulled from the upper boundary of the range located next to the resistance level of 0.9300 and with a bearish engulfing pattern being formed there just recently. We feel that things are quite simple here – the asset’s rate could drop till the lower boundary of the range. Although, the asset’s price might also get back to the middle point of the engulfing pattern and then only drop:
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