The market is steady and investors remain cautious ahead of the Fed 2 days meeting for today and tomorrow and the FOMC announcement may give us explanation concerning the quantitative easing policy decisions.
We expect that the EUR/USD will witness a bearish wave during this week, as it has formed a significant Divergence on the 4 hours chart, and prices are also trading within an ascending wedge, and this wedge give us a signal of shift of the trend from bullish to bearish.
And to be sure of the bearish trend, we recommend you to monitor the key support level of 1.3280 which is the 15% level of the ascending wedge, and if it breaches down this level , the next target will be towards the 1.3174 level , then to the 1.30 level which corresponds to the Moving Average 100 and the Fibonacci level 23.6 %.
But if the prices remain trading above the 1.33 level , the bullish wave will keep its strength, and the Euro may reach $1.3480, however we expect the first scenario to be the most possible to happen .
Dear traders: we are going to make the GBP/USD technical analysis, the Gold analysis, and the EUR/GBP, so if you would like to receive these analysis, please register in our Newsletters form, then we will send you all the analysis, the trading signals and alerts by email or on your mobile phone.