EUR/USD
The EUR/USD has gone back and forth during the week, and as we continue to look for some clarity. Both central banks are likely to raise interest rates rather soon, so you will continue to see a lot of consolidation in this pair. As things stand right now, the 1.10 level above is significant resistance, while the 1.08 level underneath is supported. The 50-Week EMA and the trend line posted just below that 1.08 level, and therefore you likely will continue to see a lot of short-term back-and-forth trading that allows for range-bound traders to take advantage of small movement.
GBP/USD
The GBP/USD has been very much like the euro during the week, going back and forth as we are trying to figure out which direction to go next. It’s probably worth noting that the more acute while he did off on Friday to show significant support at a previous resistance barrier. By doing so, the market looks as if it has found value hunters, but we have the 200-Week EMA above offering selling pressure. In other words, I think this is going to be much like the EUR/USD pair, a market that is probably stuck in some type of tight consolidation. This makes a lot of sense, as we are sitting between the 200-Week EMA above and the 50-Week EMA below.
USD/CAD
The US dollar has gone back and forth during the course of the trading week, to reach the 1.33 level at the peak. The 1.33 level was previously support and now is significant resistance. Much like the euro and the British pound, we are between the 50-Week EMA and the 200-Week EMA indicators, and therefore it is likely that we continue to see choppy and noisy behavior. With that being said, I think ultimately this is a market that is trying to sort itself out, perhaps waiting until we break out of one of those moving averages will tell you which direction to trade for a bigger move.
USD/JPY
The US dollar continued to rally during the course of the week against the Japanese yen, as the interest rate differential between the 2 central banks remains very wide. However, Friday started to see a little bit of a pullback, and I think ultimately, it is probably something that’s needed at this point. I will be paying close attention to the ¥142.50 level, an area where I expect to see significant support. I have no interest in selling this market, and I think that eventually, we will reach the ¥146.55 level, possibly even as high as the ¥148 level.
AUD/USD
The Australian dollar has been rather erratic over the last couple of weeks, but at the end of this past week, we have seen the 0.66 level offer support. It looks as if we may be trying to stabilize within the previous consolidation area, meaning that the 0.66 level should be supported, while the 0.68 level should be resistance. If we were to break down below the 0.66 level, then it opens up the possibility of a drop-down to the 0.65 level. After that, the 0.64 level then gets targeted. Alternatively, if we break above the 0.68 level, it means that we could go to the 0.69 level, possibly even the 0.70 level.
GBP/JPY
The British pound has rallied a bit during the course of the trading week yet again against the Japanese yen. As long as the Bank of Japan continues to be extraordinarily loose with its monetary policy, we will continue to see traders jump into this market and try to take advantage of “cheap British pounds.” With that being the case, the market is likely to see a lot of traders willing to jump into this market every time it pulls back, and I see the ¥180 level underneath as a major support level. On the other hand, if we can break above the ¥185 level, then the market really could start to take off again but it is a little overdone at this point.
EUR/GBP
The Euro has gone back and forth against the British pound during the week, as we continue to bounce around between the 0.85 level underneath and the 0.87 level above. The 200-Week EMA sets just above, with the 50-Week EMA hanging around the same area. If we were to break down below the 0.85 level, then it’s likely that we drop down to the 0.83 level. On the other hand, if we were to turn around and take out the 0.87 level to the upside, then it allows you to go looking to the 0.89 level.
USD/CHF
The US dollar continues to see a little bit of base building against the Swiss franc over the course of the last week, with the 0.90 level above offering significant resistance. At this point, the market would break above there, then it could try to get to the 0.91 level at that point. Underneath, I believe that the 0.88 level continues to offer massive support.
