EURUSD traded at 1.1191 level on Friday. With the start of the new week we think market is going to consolidate. We believe that the currency will continue to consolidate until the US market opens. The pair is in the down trend but with the next daily candle it is expected to change its trend. If it crosses 1.1215 level, it can head up to 1.1295 level.
EURUSD fell initially during the course of the week, but found enough support below the 1.12 level to turn things back around and form a bit of a hammer. With that, the market should try to get back to the 1.15 level, but that is close enough that it keeps us away from buying this market from a longer-term perspective. If we can get above there though, we feel that this market will then be very bullish and should continue to go much higher. With this week we do not see potential for selling this pair.
GBPUSD fell during the course of the session on Friday, and as a result it looks like the market is ready to break down even farther. If we can break down below the bottom of the range during the session on Friday, we would not hesitate at all to start selling. We think at that point in time, the market should then head to the 1.50 level, and then possibly even lower than that. If we rally from here, we feel that any type of resistive candle will be a selling opportunity as well.
The GBPUSD pair broke down significantly during the course of the week on bearish pressure from the previous up trend line. We broke down to the 1.20 level, and now it appears that if we can break down below the bottom of the range for the week, we should then reach towards the 1.50 level next, and then possibly as low as the 1.45 level. At the moment we would not prefer buying in this market.
AUDUSD initially tried to rally during the course of the week but as you can see struggled. With this, we feel that the market will continue to bounce around the 0.70 level, an area that the market has been very attracted to lately. With this, we feel that the market is going to be very choppy, and probably just simply go back and forth in general.
The AUDUSD pair fell during the course of the week, slicing below the 0.70 level. However, the market found quite a bit of support below there, as we bounced back above that level. With that being the case, it looks like the market is not ready to break down significantly yet, but we must certainly have a resistive candle from the previous week. With this pair we do not see longer term trading and so we will be short term trades if we get opportunity.
USDJPY initially tried to rally during the course of the session on Friday, but fell back into the previous consolidation area in the form of the triangle. That being the case, we have a market that tried to break out but failed. If we can break out above the top of the shooting star though, the market should continue to go much higher. At that point time we would not hesitate whatsoever to start buying. We are not sellers until we get below the 118.50 level.
The USDJPY pair initially broke out above the top of the triangle that the market has been stuck in for quite some time. However, by the end of the week we closed back within the parameters all that triangle, and that of course means that we are not ready to go higher. If we can break above the top of the shooting star that form for the week, we believe that’s a very bullish sign. As far selling is concerned, it’s almost impossible to do until we get below the 118.50 level.