The traders’ attention will be focused on the IFO institute publication where we can expect the negative dynamics continuation. The IFO indicator annual trend is still downward and against this background, the pair euro/dollar will not get strong support. The US Federal Reserve meeting results will be announced on Wednesday, October 29, so the traders will not rush to open positions today.
The pair tested the mark of 1.2710-1.2730. The fall resumption risks are still preserved. Due to the consolidation that has not developed into a large-scale correction, the pair emerged from oversold conditions.
The support levels are 1.2640-1.2660, and the resistance levels are 1.2730 - 1.2750.
MACD is in a neutral territory
To reduce risks the euro needs to rise above 1.2800-1.2820 that currently seems unlikely.
The UK GDP release for the 3rd quarter pointed out to the manufacturing sector weakness that is a negative factor for the British currency. The EUR/GBP cross-rate has been showing a side trend for the last days, indicating the balance between bulls and bears. The Federal Reserve meeting will be this week main event and therefore traders will not rush to open positions.
The inability to rise and consolidate above 1.6200 and its return below support at the level of 1.6130 is certainly a negative factor for the pound that came from oversold conditions due to the correction.
The support levels are 1.6020 - 1.6040, and the resistance levels are 1.6130 - 1.6150.
MACD is in a neutral territory.
The level of 1.6040 testing seems quite possible in the short term and the level breakthrough can be a harbinger of even greater losses. Nevertheless, the ability to consolidate above 1.6040 and overcoming the resistance level of 1.6130-1.6150 will ease the downward pressure, and a rise above the level of 1.6200-1.6220 will give a reason to consider the base formation.
The bulls continue to control the situation in this currency pair. The world's leading stock markets ended with steady quotations growth last week that is a very positive factor for the dollar/yen.
Due to the important macroeconomic statistics publication absence traders’ attention will be focused precisely on the stock index dynamics S&P 500 and the Nikkei 225. The dollar/yen growth has its limits at this stage and resistance around 108.40-108.60 turned out to be the limit. All attempts to rise above this level were unsuccessful last week. The pair fell below the support level of 107.70-107.90 that increases the risks of the renewed downward correction
The support levels: 107.00-107.20, and the resistance levels: 107.90-108.10.
The MACD indicator is in a positive territory.
If the price fixes below the local support level of 107.85, it will result in the reduction to the level of the 107th figure.