By TraderVox.com
Tradervox.com (Dublin) – The US dollar weakened against most of its peers last week as speculation Ben S. Bernanke would signal stimulus increased in the market. This led to the greenback closing lower against major currencies. However, according to performance charts, the dollar crosses were little changed on Friday last week. Here is a short analysis of major pairs and the forecast for the week ahead.
GBP/USD: this pair opened the week at 1.5800 and dropped to a low of 1.5754 as the support level at 1.5750 held firm. As speculations of QE3 rose, the pound gained against the dollar, pushing the pair up to 1.5895 but could not break the resistance line at 1.59. The pair then dropped a little to close the week at high of 1.5858. This week, the pair is expected to trade within the range of 1.5846 and 1.5851. The technical levels to look at include resistance levels at 1.6032, 1.5963, and 1.5914. Support levels include 1.5797, 1.5729 and 1.5680. Our outlook for the week is neutral; hence we expect the pair to trade within range.
USD/JPY: the pair has traded below the 78.80 level as the dollar lost ground against major currencies on speculation of QE3. This week the cross is expected to be bearish as investors are expected to enjoy the safety of the yen. The pair will trade at the pivot level of 78.39; and the resistance levels to keep your eyes on include the 79.01, 78.81, and 78.59. Support levels include 78.17, 77.97, and 77.75. Our outlook for the week is bearish as the yen enjoys the safe haven demand.
USD/CHF: the pair opened the week at 0.9603 and made an attempt upward to reach a high of 0.9635. However, as speculation of QE3 in US increased, the pair dropped to a low of 0.9502 before improving slightly to close the week at 0.9542. We expect this pair to trade within the range of 0.9552 and 0.9554 this week. However, some of the resistance lines that might come in to play include resistance at 0.9716, 0.9664, and 0.9606. Support lines are 0.9497, 0.9444 and 0.9387.
EUR/USD: the cross has maintained a very narrow trading range as the market reacted to some positive report from euro zone and the euro enjoyed some dollar weakening to hold its gains made the previous week. The pair traded below 1.2587 line and above the support line at 1.2520. This week, the pair has its pivot at 1.2569 and 1.2571. Resistance lines to look at are 1.2789, 1.2713, and 1.2645, while support levels include 1.2501, 1.2425, and 1.2357.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox
