European Currencies' Decline Slows Near Key Levels
As anticipated, investor concerns over escalating trade tensions between the U.S. and Europe, following Donald Trumps U.S. election victory, have driven the euro and pound toward critical support levels.
GBP/USD
Last week, GBP/USD sellers pushed the pair down to the significant 1.2600 level. After testing this support, the downward trend paused, transitioning to sideways movement within the 1.27001.2600 range.
Technical analysis suggests the possibility of an upward correction, with a bullish "engulfing" pattern visible on the daily timeframe. If the price breaks above 1.2700 in the next trading sessions, a move toward 1.28401.2800 could follow. Conversely, breaking the recent low near 1.2600 might open the path to 1.25001.2450.
Key events to watch:
- 10:00 (GMT+3): UK Consumer Price Index (CPI) for October.
- 16:30 (GMT+3): UK House Price Index.
- 19:00 (GMT+3): Speech by Bank of England MPC member Ramsden.
EUR/USD
EUR/USD technical analysis indicates a potential short-term upward correction, as sellers have struggled to break the 1.0500 support for about five days. Sustained movement above 1.0620 in the upcoming sessions could lead to a test of resistance levels at 1.07401.0700. However, a break below 1.0500 might result in revisiting last years lows at 1.0450.
Upcoming news influencing EUR/USD:
- 12:00 (GMT+3): ECB Financial Stability Report.
- 13:00 (GMT+3): Eurozone construction output for September.
- 16:00 (GMT+3): ECB President Christine Lagardes speech.
Read more: https://fxopen.com/blog/en/ru-european-currencies-decline-slows-near-key-levels/
Text source: Forex Trading Blog
