EUR/USD
The Euro has had a strong week, initially falling towards the 1.16 level before bouncing yet again. The pair seems to be getting a reprieve after several political issues have come to rest in the EU, at least for now. With this in mind, I suspect that value hunters will continue to come back into this market, as the Euro is undervalued at the moment. The 1.15 level continues to offer massive support, and the 1.1850 level above offers significant resistance.
GBP/USD
The British Pound continues to follow the EUR/USD path, meaning that the support is currently flexing its muscles in the Forex world, as the 1.30 level continues to be on the minds of traders. This is a market that continues to build a bit of a base, and I think the market will continue to be choppy, but I also think that it is only a matter of time before value hunters jump into this market as well. I would expect a “buy on the dips” mentality to continue.
USD/JPY
The US dollar did very little this last week, as we awaited the employment figures out of the United States. The 111-yen level seems to be offering a lot of supply, and the markets simply don’t have the momentum to break above it yet. The 109-yen level currently offers support, so this is a market that I think will continue to be sideways more than anything else. I would stick to range-bound short-term strategies this week, or at least until we can break out of this tight range.
USD/CAD
The US dollar initially spent the week rallying against the Loonie but found too much resistance above. After the jobs number, and the signs of support again in the crude oil markets, the pair rolled over again. However, I see a lot of support under current levels, especially near the 1.30 level, and I think that the support extends down to at least the 1.28 level. There is a big “zone” in this area to offer value, so I think we initially go lower, and then there should be buyers later in the week.
