EUR/USD
EUR/USD
initially tried to rally during the course of the session on Friday,
but then fell apart and reached towards the 1.1050 level. That being
the case, there is more than enough support below, and as a result we
think that we will bounce given enough time. The market continues to
go back and forth and it’s going to be difficult to hang onto a
trade for any real length of time when it comes to the EUR/USD pair.
Short-term volatility could offer scalping opportunities in both
directions, but unless we
are sure,
we
should stay away from here.
Forecast
EUR/USD
dipped at the end of the week as the green-back
rallied on extremely good jobs data. The pair closed the week at
1.1086 at the very bottom of its range seeing a loss of almost 0.8%
for the week. In the coming week the Euro
is expected to remain depressed and the dollar should climb as the
Fed members turn hawkish. All indications is that the Euro
should continue to drop this week.
GBP/USD
GBPUSD
went
back and forth during the course of the session on Friday, as we
found the 1.30 level to be supportive. I believe that there is a
significant amount of support below the 1.3 level that extends all
the way down to the 1.28 handle. I have no doubt that given enough
time we will probably break down below there but the candle for the
Friday session suggests that we may have to bounce first before we do
that so that we can build up enough momentum to finally break down.
Forecast
GBP/USD
will
continue
with the downside bias price action signalling
a two bar reversal bearish movement. Rejection at resistance area
closed below the trend line and stochastic oscillator is currently at
50.0 levels. The pair closes below the rejection of trend line and
there is clear indication of trend reversal shifting the momentum.
AUD/USD
AUD/USD
went back and forth during the course of the session on Friday, as we
got stronger than anticipated jobs numbers coming out of the United
States. However, this is a market that has been rallying for some
time now, and of course tends to follow the gold
markets overall. The gold markets have been fairly bullish, so having
said that I feel it’s only a matter of time before we continue
going higher as the Australian dollar will benefit from that market.
Pull-backs
at this point in time should attract buyers.
Forecast
AUD/USD
rallied late in the week to trade at 0.7617 but gains were limited by
the climbing US dollar. New stimulus from the BOE
held support commodity based currencies. The pair showed a weekly
gain of 0.26% and is a strong buy in the week head with several
events on the calendar including the RBNZ rate decision following the
RBA rate drop last week. None of the four major banks will pass on
the full interest rate cut to its customers following the Reserve
Bank of Australia's decision to drop rates to a record low of 1.5 per
cent.
USD/JPY
USD/JPY
rallied a bit during the course of the session on Friday as the US
jobs number came out stronger than anticipated. Because of this,
looks like we could bounce a bit and you should also be aware the
fact that we formed a hammer on the weekly chart. With that being the
case, it is likely that we will eventually get some type of
significant bounce in this market. Ultimately, this is a market that
should continue to attract buyers based upon the fact that the Bank
of Japan below is more than likely going to get involved if this
keeps up to the downside.
Forecast
USD/JPY
initially fell during the course of the week, but bounced enough to
form a nice-looking hammer. This of course makes quite a bit of sense
as the US jobs report was much stronger than anticipated. In fact,
right above the top of the hammer should send this market looking for
the 105 level.
Given enough time, it’s very likely that the market will eventually
continue to go higher as the 100 level below will attract the Bank of
Japan, and possible intervention in this market or at least further
quantitative easing.
