By TraderVox.com
Tradervox.com (Dublin) – The USD has been down against major currencies but remained strong against the euro. However, the Euro has touched new lows against most majors reaching a 12-year low against the yen as new market concerns rose on euro zone debt crisis. Here is the market outlook for major pairs.
EUR/USD: the pair was spirited to break higher, but it had no enough support to breach the 1.2330 line. This pair dropped lower to close the week at just above 1.2150 critical support level. The euro-dollar pair is expected to continue on a bearish trend as Angela Merkel casts doubts on the success of efforts made by the euro zone leaders. The US on the other side is not providing enough data to quell QE3 speculations despite Fed Chairman Ben Bernanke refusing to provide any clues. The range between 1.2144 and 1.2150 is critical and loss of this could lead to a downfall.
USD/JPY: the yen continued to strengthen against the dollar and questions on whether BOJ will intervene are being asked. The pair attempted to reach 79.10 line with no success and fell to 78.46 where it closed. The uptrend support was broken and the pair moved sideways before dropping, there is a bullish outlook on the pair this week however as the dollar recaptures its safe haven demand.
GBP/USD: the cross moved upwards during the week as the pound strengthened against the dollar, but lost some of those gains to close the week at 1.5615. The pair had opened the week at 1.5580; dropped to 1.5517 and then rose to 1.5737 as the 1.5750 resistance line held firm. The pair dropped slightly to close the week at 1.5615. Due to concerns in the US data, the pair has a bullish outlook this week.
USD/CHF: the pair was choppy last week where it increased to 0.9874. The cross opened the week at 0.9806 and dropped to 0.9783 before climbing to 0.9887 as the resistance line of 0.9915 held strong. The pair then shed some of these gains to close the week at 0.9874. The cross is expected to remain within range this week as US safety status continues to lose confidence among investors.
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