Weekly Technical Forecast for Major Crosses

By TraderVox.com

Tradervox.com (Dublin) – The US dollar has continued to decline against major currencies. However, last week’s Non-Farm Payrolls and renewed hope in the euro zone have weakened the attractiveness of safe haven currencies like the dollar and the yen. The dollar is gaining on the yen as speculators choose the greenback over the Japanese currency.  Here is a brief outlook and analysis of major pairs.

EUR/USD: the pair opened the month with a climb but could not break above the resistance line at 1.2960. As the week progressed, the pair broke above the important line of 1.30. This week, the pair has started low dropping to 1.2977 at the start of trading in London. The outlook for the week remains bearish as uncertainty still remains in Europe. However, the pair will test the 1.30 line and probably break above as Angela Merkel, the German Chancellor, is expected to show support for the continued participation of Greece in the monetary union.

GBP/USD: the pair traded within range last week, when it opened that week at 1.6122. It dropped slightly to 1.6058 before rebounding to 1.6217.  It retreated to close the week at 1.6132. The outlook for this week remains neutral as the market turn focus to Europe. We expect the pair to trade within range this week without major breaks of resistance of support levels.

USD/JPY: The pair sprout above downtrend as it reversed its course to move upward. The pair battled with the 78 line as the week started and finally emerged above it to test the resistance line at 78.80. The cross retreated to close the week at 78.66. With Tokyo and US market closed for public holiday today, the pair dropped a bit at the start of the London session to 78.32. However, with cross trading above downtrend, the outlook for the week remains bullish.

USD/CHF: the pair started the week with a move up above the 0.9434 it closed the previous week to touch a high of 0.9438. The cross the dropped to 0.9275 but closed the week above the important level of 0.93 at 0.9391. This week’s outlook is bullish but it is expected to trade within range.

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