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Busy week for central banks. USD loses traction

Tomasz Wiśniewski

This week will be all about the central banks. Four major institutions will have their interest rate decisions: FED, ECB, BoE, and SNB. From that four, only in US, we should see some changes. Currently, on the markets, we can see three nice trading setups:

First one is the NZDUSD, which is going higher driven mostly by the false breakout pattern that occurred at the end of last week. Buyers are also supported by the inverse head and shoulder pattern. Buy signal is on as the neckline is already broken.

Next one is the EURGBP, which is also having a false breakout scenario here. The price attacked 0.875, broke it but a few hours later, went higher and came back to the range. Candle from yesterday gave us higher highs and lows which is strongly supporting the positive sentiment here. The closest target is the 0.9 resistance.

The last one is EURUSD, which confuses the traders a little bit as on Friday the daily candle was a hammer and on Monday – a shooting star. That gives us opposite signals. For a legitimate trading opportunity, we have to wait for the breakout either the 1.181 resistance or the 1.173 support.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire