The EUR/USD has rallied a bit during the course of the week to clear the parity level. By doing so, the market looks as if it is going to continue to hang about the parity level, and I think that will be what happens over the next several sessions, we simply go back and forth in this general vicinity. Rallies at this point in time should be shorting opportunities, happening at the first signs of exhaustion. The 1.02 level will more likely than not end up being a bit of a resistance barrier.
The USD/JPY has rallied rather significantly over the past week to reach the ¥145 level. The ¥145 level is an area that obviously is psychologically important, but you should also keep in mind that the market can only go in one direction for so long. The US dollar is overbought, so I think we may get a little bit of a pullback during the course of this week. The ¥140 level underneath should be supported, but if we break it down below there, the market is likely to go looking toward lower levels for buyers. Even if we do fall this week, I am not going to be shorting this market anytime soon.
The AUD/USD has been very noisy over the past week, as the 0.67 level was tested for support. The 0.67 level has been supported multiple times, so it does make a certain amount of sense that we would see a lot of noise in that general vicinity, and I think that will continue to be the theme going forward over the next several sessions: that we have a major support level underneath that will continue to cause buying pressure. If we were to break down below there, then the market is likely to go much lower. On the upside, I believe that the 0.70 level is a significant resistance barrier that will be difficult to overcome.
The GBP/USD has rallied this week, showing the 1.15 level as an area of some importance. The market had recently seen support in that area, so it does make a certain amount of sense that we would see a bounce in this area. Fading rallies will continue to be the way I treat the British pound, but I also recognize that we are oversold. This week may be all about a bounce, but I have no interest in buying.