EURUSD trading gapping lower at the open of the trading week and is trading near last week’s lows. The EURUSD has been consolidating for the last week and a half after posting a long bullish candle on Sep 18th followed the FOMC statement. Consolidation is between levels of 1.3461 to 1.3568, 100 pips range. A break above or below those levels should yield a move of at least 100 pips.
GBPUSD posting a long bullish candle on Friday retracing all of the losses made on Thursday. The pair eventually closed the trading positively after sustaining some losses at early stages of the week. We mentioned in our previous reviews that sentiment and trend on the GBPUSD are bullish, the bullish momentum stays intact as long as the pair is above last Thursday’s lows. The cable is traded near monthly highs on Friday set on SEP 18th post the FOMC statement. Those levels could offer some resistance to the pair and send the pair to a deeper retracement as sentiment is at overbought extremes. But a move below Thursday’s lows is needed in order to confirm. Bias remains to the upside as long as the pair is above those levels with target objectives at 1.6214 initially, followed by 1.6270.
USDJPY trading lower on Friday, retracing all of the gains made on Thursday and closing below 98.43 which served an important support for the pair. The USDJPY opened the trading week gapping lower and trading below monthly lows set on the 18th and the 19th. A move below the support trend line set from Jun lows would target 97.43 next. Weekly bias is to the downside as long as the pair is below last Thursday’s highs at 99.15.