The medium-term uptrend is at risk since the newly formed bearish trend line is providing significant amount resistance to this pair at 1.1220 level. In the last week the pair struggled very hard to overcome the bearish trend line resistance but ultimately price closed below the trend line resistance level. This week is very important for the EURUSD pair since the pair is most likely to break the critical resistance level at 1.1220 level. However, the mighty U.S dollar has recovered its losses to a certain extent and economic researchers are suggesting that there is 67% chance of rate hike in the month of December. Investors are overly cautious about the FOMC meeting minutes in this week. A hawkish statement will clear the resistance level at 1.1220 level. A valid break of that level will again bring the bulls in the market. The first initial bullish target for this pair would be critical resistance level at 1.1450 level. Professional traders are waiting for the price to reach this level to short the EURUSD pair in favor of the long-term bearish momentum in the market, however, if the pair manages to breach that level then we will see a strong bullish rally in the pair towards the 1.1600 level. On the contrary, if the critical resistance level at 1.1450 level provides enough selling pressure to this pair then we will see a decent southward move towards the critical support level at 1.1180 level. A daily closing below that level will bring further downward movement in this pair towards the support level at 1.09594 .To be precise, the volatility will be pretty less for the EURUSD pair at the starting of the week, however, and extreme volatility might be seen in the event of FOMC meeting minutes on Wednesday. A hawkish statement by the FED will definitely create strong selling pressure in the market. So it’s better to stay on the sideline until more lucrative buying opportunity present itself in the market.
There has been an another bullish run on the daily chart in the USDCAD pair after the pair falls sharply in the last month couple of month. The pair has managed to breach the 200-day daily SMA in the daily chart which is a strong bullish indication for this pair. However, the critical resistance level at 1.3305 level is going to provide a significant amount of resistance to this pair. Professional traders are waiting patiently for the price to retrace back to the critical resistance level at 1.2205 level to enter short. The first initial bearish target for this pair would be the support level at 1.3000 marks. A clear decisive break below that level will bring strong downward momentum in this pair targeting the key support level at 1.2880 level. The pair is most likely to find a significant amount of support from that level since the newly formed rising trend line support lies there. A valid break of that trend line support will bring the pair towards the 1.2650 level. The recent week is very important for USDCAD traders since the FED is going to deliver their statement in the FOMC meeting minutes. If the FED indicates that there might be a rate hike in the month of December then we might see a decent bullish move in this pair towards the 1.32470 mark. Considering all the fact, the pair is most likely to face the significant amount of resistance at the 1.32470 level. Traders are advised to go in favor of the short entry in the longer time frame with price action confirmation signal.
Professional traders are considering the EURJPY pair might create an extreme spike in the USD related pairs. On the contrary, the EURJPY pair movement is comparatively much safer during the FOMC meeting minutes. In the last week, the pair has formed nice evening star near the 100 days SMA on the daily chart. Professional traders have shorted this pair with précised stop loss near the 116.50 level. The first initial bearish target for this pair would be the minor support level at 114.00.Long term investors are expecting a decent bounce of 40 -70 pips from that level since it is the broken bearish trend line support. To be precise short-term traders can make quick 20 -30 pips by entering long into this pair near the 114.00 level with price action confirmation signal. However entering long into this pair is extremely risky since the final target for this pair is towards the critical support level at 112.20 level. The pair is most likely to face a significant amount of support from that level, Professional traders will book half their profit from their open short trade and use the trailing stop loss features in order to maximize the profit. A valid break of the 112.00 level will bring a strong downward rally in the EURJPY pairs towards the 109.20 level. Though the overall bias remains strongly bearish in the EURJPY pairs but we cannot ignore the bullish momentum also. A sharp move above the 100 days SMA or 116.80 level will nullify the strong bearish setup in this pair. A valid break of that level will turn the market sentiment into bullish mode. In that case, the first initial bullish target for this pair would be the critical resistance level at 118.50 level. A valid break of that level will bring strong bullish rally in this pair towards the 121.20 level. Considering all the fact selling the pair near the 100-day daily SMA is the best pick in this week.