Major Currency Pair Analysis for the Week
The US dollar had mixed results last week against the other major
currencies in the foreign exchange trading markets. The greenback
continued its ascent against the commodity currencies (Australian
dollar, New Zealand dollar, Canadian dollar) while falling against the
European currencies (euro, British pound sterling, Swiss franc) and also
declining against the Japanese yen for a second straight week.
This week’s fundamental calendar is full of important economic events
with a major focus on Friday’s US nonfarm payrolls report while there
is also three interest rate decisions (Australia, euro zone, United
Kingdom) for the markets to digest. See the currency pair commentary
& major economic highlights below.
Major Currency Pair Commentary:
EUR/USD — The euro made gains against the dollar
last week but failed in its bid to surpass the major 1.30 level. This
week will be all about overcoming this major level and whether this pair
can build some upward momentum. Levels to watch this week are the
previously mentioned 1.30 major and on the downside, the 1.2900 and also
the 1.2850 level for weekly support.
GBP/USD — The pound sterling fought back last week
from three straight weekly declines to gain against the US dollar as the
pair bounced off the major psychological 1.50 level. Levels to watch
this week are at 1.5250 level which has provided previous support and
resistance. A close above this level would indicate bullish momentum
going forward. On the downside, support comes in around the 1.5100 —
1.5090 area and then the major 1.50 support level which has provided
price bounces for the past two weeks.
USD/JPY — The dollar has fallen against the Japanese
yen for two straight weeks and looks to test the major support and
resistance area of 100.00. This is a major test for this currency pair
and will likely determine the short-term direction as well as whether
the 100 level will act as future support or future resistance. A close
below 100 could bring a correction to the 97.50 target area.
USD/CHF — The Swiss franc has gained against the
dollar for two straight weeks as this currency pair has run into selling
resistance above the 0.9750 area. This currency pair trades currently
near the 0.9550 level which had acted as previous support and
resistance. Levels to watch for this week are 0.9550 and 0.9500 while a
close below 0.9500 could open up further decline to the 0.9250 area.
Upside momentum will likely see resistance at the 0.9650 level and into
the 0.9700 — 0.9750 area.
Very nice post for forex trading software.
ReplyDeletehttp://www.fx-insights.com