EUR/USD
The EUR/USD pair continued to basically hang around the 1.35 level, but it shows that we are essentially waiting to find out what the Federal Reserve will do about tapering off of quantitative easing. The Fed stepped away from doing so this last month, but several of the members of the FMOC stated that they are waiting to see what employment in the US does. Since the Non-Farm Payroll numbers haven’t come out, we still are waiting for clarity. In the end though, I believe that the EUR/USD eventually heads to the 1.40 area.
USD/CAD
The USD/CAD pair essentially has been hanging about the 1.03 area, and this past week wasn’t any different. We tried to get above the 1.04 level, but the area offered too much resistance in the end. I believe that the oil markets will continue to force the markets back and forth as the oil markets will normally push the value of the Canadian dollar higher when they rise. That being the case, I think we are “stuck” in the 1.03 – 1.04 range.
AUD/USD
The AUD/USD pair fell during the early part of the week, but then bounced enough to form a bit of a hammer under the 0.95 level. This area has been very resistive time recently, and as a result I think that is where the real fight is going to be. If we can close above the 0.9550 level on the daily charts, I think this pair will skyrocket as the Aussie will be heading towards the parity level. The Federal Reserve not being able to taper will play into the idea of the Aussie going to parity in my opinion, and as long as that’s the case – commodities, and therefore commodity currencies – will continue to rise.
GBP/USD
The GBP/USD pair initially rallied during the week, but as you can see failed to hang onto the gains. This pair had failed, and as a result the market formed a shooting star. This shooting star signals to me that the market is probably going to pull back, and because of this I think that the pair will eventually be a nice buying opportunity in the end. The 1.5750 level should offer support, as will the 1.55 level. The pair has been very parabolic over the course of the summer, and therefore a rest is probably called for. I won’t be selling at this point – I will be waiting for that supportive candle.
