Figure 1: The EURUSD currency pair on the daily chart
At a point G, there was a false break of the support zone, which is at the level of 1.0770 - 1.0790
. Another strong support is in the range of 1.0630 - 1.0690.
The first resistance can be considered the declining trend line between EF points. If it breaks, the price could continue to rise to the next resistance band 1.0978 - 1.1000.
The USDJPY currency pair
The Japanese yen, like the US dollar, is considered a safe haven, and last week the battle for which one of them is safer turned out to be indecisive as the USDJPY moved in a narrow side trend. Overall, however, there is still a bearish trend on the USDJPY, as EMA 50 is below SMA 100. Given the continuing influx of bad data from the US, this trend might continue.
The Fed will meet on Wednesday and the question is what further steps the central bank will take to support the economy and how big the decline in US GDP will be, which will be reported. If the decline is significantly worse than the expected decline of 4%, it could cause a further decline in the USDJPY. In the past, however, we have seen that weak economic data from the US led to a strengthening of the US dollar, which has retained the status of a premium reserve currency.