Weekly Forex: EUR/USD Pair Went Up and Down During the Week

LONDON, the U.K. – The EUR/USD pair seesawed during the week, with the up and down trend for the currency pair expected to continue in the coming week.

The Euro went up and down during the past week, and more of the same performance is expected for the currency next week. The massive support for the Euro is 1.10 levels, while the massive resistance is at 1.12 levels. There is not much expected in the coming week that would boost a breakout for the Euro. Central banks from both countries are peacemakers, and the market is not even the slightest surprise that there will be no major move that could make headway for any of the currency.

Meanwhile, the previous week has been good for the GBP/USD pair. The British pound tracked gains following the announcement from the Bank of England that it is forgoing interest rate cuts. However, based on the charts, there might be some trouble ahead for the currency. But analysts say that market players might continue to ride in on the buy-on-the-dips sentiments. Meanwhile, analysts also stated that if the pound breaks and goes down below the 1.30 levels, the market might be in for a correction. And while the British pound is having good performance against the US dollar as of late, it is predicted to have a tougher fight going up.

On the other hand, the AUD/USD pair got the short end of the stick the previous week. The Australian dollar dipped against its American counterpart, and it is expected to continue with the downward performance in the coming week. According to market analysts, the break going down below the 0.67 levels is the sign for a forthcoming consolidation for the currency. It is expected to reenter the same area that was a critical one during the financial crisis. The currency is predicted to be trading between 0.64 to 0.67 against the US dollar going forward. The currency has been dragged with the negative sentiment in the market due to the spread of the deadly coronavirus. Without any good news about the issue, The Aussie dollar isn’t expected to recover very soon.

Moreover, the US dollar also traded with sharp losses against the Japanese yen the previous week to settle at 108.30 yen. While the 108 level remains strong support for the currency, it could go down to 160 levels is the pair breaks below its upward trend line.

Although a rollover is possible going forward, it will remain largely dependent on the risk appetite in the market.