By: Bastian Rubben
The US stock markets closed another positive trading week, led by NASDAQ that completed 11 green candlesticks on the weekly chart. Dow and S&P showed impressive performance as well, as they had just 1-2 bearish candlesticks in the weekly charts since the beginning of the year. This means that the probability for a sharp red candlestick to appear is getting higher each day the stocks continue rising.
In spite the bullish session in Wall Street, the USD was strengthening against the major currencies, but last week the currencies corrected against the USD. The EUR, which has been sliding for almost three weeks because of the official Greece default, closed the trading week with a sharp bullish candlestick after the pair EUR/USD reached the strong support at 1.30. The EUR is now moving towards 1.325 and if it succeeds breaking this resistance, it might try to take over the recent pick at 1.35.
The British pound also suffered from the fundamental situation in Europe during the recent weeks and it fell hundreds of pips after reaching the climax at 1.60. It found a strong support at 1.565 and it is now dealing with the resistance at 1.565, which is the higher boundary of the channel that the pair GBP/USD has been moving through. If the current pattern remains, the pound will slide down back to the support of the channel at 1.565. However, if it gets stronger and manages to break through the resistance, it might try to rise above 1.60 once again.
