The Dollar is set to be the dominant currency in the forex market this week, as the banking crisis returns to the forefront. The banking share slump and the bullish Oil prices may hurt the Dollar this week, as traders bet against the greenback.
EUR/USD
On the 4-hour chart the pair continues to range trade in the upper half of its Bollinger Bands. Both the hourlies and the daily charts are providing mixed signals with no significant breach. Such a range trading floating nature may provide a good opportunity for traders to safely buy on the lows and sell on the highs while profiting from the relatively predictable range trading.
GBP/USD
A bullish cross may be forming on the hourly chart, indicating a potential price movement towards the upper resistance level of 1.4300. The daily chart’s Bollinger Bands are tightening, indicating that a violent breach may take place in the next few hours, supporting the potential bullish movement.
USD/JPY
The bullish trend is loosing its steam and the pair seems to be consolidating around the 98.25 level. The 4-hour chart shows a fresh bearish cross that has just formed, indicating a future downward price movement. Supporting this is the RSI on the hourly chart which is floating in the overbought territory. Traders may look for the pair to reach a lower support line of 97.50.
USD/CHF
After bottoming at the1.1486 level on Friday, the pair has now consolidated a bit higher around the 1.1600 mark. A fresh bearish cross has just formed on the hourly chart and the upper Bollinger Band was also breached, indicating a potential downward movement in the near future. Going short today looks to be the right move for traders.
Gold
Gold prices rose again significantly in the last week and peaked at $957.88. This may present an overbought situation as the 4-hour chart’s RSI is presently in the overbought territory, while the weekly chart shows a bearish cross has formed on the Slow Stochastic with its RSI floating in the over sold region.