EUR/USD
The EUR/USD pair had a very strong week as we crashed into the bottom of the uptrend line from the previous ascending triangle. After all, you have to keep in mind that the European Central Bank disappointed the market as far as its amount of stimulus, so therefore the Euro suddenly had been oversold. However, there is a lot of noise just above so I still think that more than likely we could see some selling pressure. The Friday session was suspiciously quiet, and with all the noise just above I would not be surprise at all to see a couple of negative sessions. Once we get above the 1.11 level though, at that point in time I think the market will reach towards the 1.15 handle.
USD/CAD
The USD/CAD pair continues to grind away sideways, and I think that will be the way going forward this week. However, the oil markets are getting fairly close to breaking down, and with OPEC ministers not been able to cut oil production, it’s very likely that eventually the USD/CAD pair will break out and above the 1.35 level. In the meantime, I’m buying short-term pullbacks.
USD/JPY
The USD/JPY pair continues to grind away just below the 123.50 handle. I believe that this market continues to offer buying opportunities on short-term charts, but at this point in time we do not have enough momentum to finally break out above the 125 handle. Ultimately, the market will break out above there but I think in the meantime we are simply going to grind sideways over the next week, with an upward bias.
GBP/USD
The GBP/USD pair broke down during the week initially, but found enough support just below the 1.50 level to turn things around and form a hammer on the weekly chart. With that being the case, I feel that this market will probably try to rally but the real battle will be somewhere near the 1.53 level. Until we get above there, I would be very suspicious of rallies and be looking to short-term opportunities for selling positions.
