Technical Analysis For Major Pairs

By TraderVox.com

Tradervox.com (Dublin) –  EUR/USD: the opened the week just below the resistance line at 1.2330 and advanced to 1.24. However, this pair plunged to support level at 1.2144 after speculation Draghi will disappoint came into play. The pair was able to reverse this as it advanced to 1.24 again before dropping to close the week at 1.2384. The pair made a breakout from the short term downtrend channel as it broke above the downtrend resistance. The pair is expected to continue with its upward trend at a slow pace as things in Europe continue to take shape.

GBP/USD: the pair started off the week at 1.5726 and fell sharply through the support line at 1.5515 as it touched 1.5490. While it was down most of the week, the pair retraced to close the week almost a cent lower at 1.5632. With the UK economy in deep hardships and the situation in Europe, the pound is expected to lose grounds against the US dollar as investors seek the safety of the dollar. However, this will be moderate as the JPY is attracting more safety seekers.

USD/JPY: the pair opened the week dropping temporary below the support line 78. However, the cross retraced to close the week unchanged at 78.46 after a week that saw regular risk on-risk off movements and classical range trading. This week, the cross is expected to improve with improvements of the dollar as risk appetite slows in the market following Europe’s efforts to curb the debt crisis; positive job data will also push the dollar higher. The market also expects the BOJ to intervene on the strengthening yen.

USD/CHF: opening the week at 0.9761, the cross advanced to a high of 0.9898 as the dollar gained momentum; however, this was to be short lived as the Franc made a comeback pushing the cross to lows of 0.9697 and eventually pushing it further down to close the week at 0.9691. The market expects safety demand to be moderate during the week hence the cross will be bullish.

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