The EUR/USD pair has formed an ascending triangle pattern on a 30 minute time frame. Historically speaking, ascending triangles do break towards the upside in an upward trend. If this pattern does break out towards the upside it could easily push the price towards the yellow rectangle shown on the chart.
The GBP/USD pair is trading deep in its resistance zone on a 30 minute time frame. The price is spending too long at this level which means that this level of resistance may not be able to reverse the trend as bulls are in strong control. The pair is trading above the 50 day (shown in green) and the 100day (shown in yellow) moving averages which further confirm the above argument.
European stock markets are set to open higher on the first trading day of the week by building up further gains on top of last week’s gain. The stock market in Europe is gathering their momentum on the back of a strong win by the Japanese prime minister by 121 seats in the upper house election. There is more optimism in the market that Mr. Abe may be in a stronger position to deliver this promise of keeping up the quantitative easing program in the country. However, if the prime minister fails to deliver on his verdicts, it could derail the rally for the indices in Tokyo.