Good morning Traders!
It’s a big week for Central Banks, with the Fed, the ECB and the BOE among the major
Central Banks delivering their monetary policy and interest rates decision. Surprises on
the rates decision or the outlook can see strong levels of Support and Resistance taken.
EURAUD
Last week EURAUD has once again tested the strong support level of around 1.5250 after
the Daily chart pushed to a new Lower Low, it had then, bounced of this level, working
out the overextension on the latest move. I’d like to see either a compression of price
against this level, making Equal Lows and Lower highs before a potential break of this
level, or a strong decisive break and a close below that level, followed by a pullback to
test this level from below.
A strong Euro in reaction to the ECB decision and outlook could see a potential move
towards the upper level of around 1.56 while a weaker Euro could see a break of this
strong support level around the 1.5250.
EURNZD
EURNZD is also trading around its strong support level of around 1.6660 however in this
case, the Monthly chart is still in an uptrend, yet the strong rejection of the breaking
attempt of 1.7 could indicate more sellers present. Similar to EURAUD, I’ll be looking for
either a compression of price against this support level, or a break and a decisive close
below, followed by a pullback to around this level.
A strong Euro in reaction to the ECB decision and outlook could see the market
attempting the 1.7 level again, while a weaker Euro could see a break of this strong
support level around the 1.6660.
Happy Trading!
