Let's take a look at the weekly one: the pair is closing below previous week opening, and below the 38.2% retracement of its latest bearish run around 1.0865, while the technical indicators are bouncing from extreme oversold levels, still far from signaling an upward continuation, even in corrective mode. Furthermore, the 61.8% retracement of the same decline stands at 1.1120, meaning that the EUR can extend up to that level, without actually harming the dominant bearish trend, considering we are talking just about this year decline and not about the whole fall from around 1.40. Nevertheless, the 1.1120 has become now a line in the sand, as stops are right now building up above the level and if triggered, the pair can continue rallying up to 1.1533, this year high, albeit not next week. Therefore, 1.0685 the Fibonacci level, 1.1040, this week high, and 1.1120, another Fibonacci level, are the critical resistances for this week.
To the downside, post FED low is the level to follow, the 1.1610 price zone, as if below, the dollar may resume its bullish tone and retest the 1.0460 level next week.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.