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!

Tamar Mehr

Tamar Mehr is a professional trader, neuropsychological trading mentor, FXGlobe Ambassador, and decision-making expert. She’s based in Brisbane, Australia.

Trading Advice Disclaimer:
Our Ambassador’s Daily Picks are not trading advice. These are informational articles covering the events which happened in the market already & scheduled events which are scheduled to happen in the Economic & Earnings Calendar.

General Risk Warning:
Trading leveraged products such as Forex and CFDs carries a high level of risk thus may not be appropriate and/or suitable for all investors. The investment value can both increase and/or decrease and the investors may lose all their invested capital. The content of this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Under no circumstances shall the Company or affiliated Companies have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to leveraged products.