Weekly FX Forecast- Nov. 04, 2013

EUR/JPY

The EUR/JPY pair fell during the balance of the week, but what I found most interesting is that the Friday candle formed a hammer at the 133 handle. Because of that, I believe that this market will continue to be bullish overall and you have to keep in the back of your head the fact that we have been grinding higher. This is just simply more of that, and because of that, I feel that the longer-term trader will be well served by being long of this market, but they have to keep in mind that it is going to be more but grind and less of a solid move higher.

EUR/USD

The EUR/USD pair fell hard during the week, slamming into the 1.35 level. This is an area that's been significant support over the last couple of months, so it does not surprise me at all that the market held. However, it does look volatile at this moment basically because we close at the very lows of the range. I think this coming week will be very telling for the Euro, and I also believe that we will see some type of support come into play. However, this is a market that more than likely will be best avoided until this week's candle gets printed, giving us a better and more clear picture of what's going on.

GBP/USD

The GBP/USD pair fell just as hard as the Euro did against the Dollar. However, we are sitting right on top of major support at the 1.59 level as well, so it's very similar in its nature. We need to see what happens this coming week, but I do think that if we break below the 1.59 handle on a daily close, we will more than likely see 1.5750 rather quickly. It's down there that the support comes back into play, and therefore I would be willing to sell for a quick trade, and then turn around and buy on a longer-term type of trade.

AUD/USD

The AUD/USD pair fell during the week, breaking the bottom of the shooting star that had formed the previous week. This of course is a very bearish sign, and you do have to keep in mind that the shooting star from two weeks ago was formed at the 50% retrace. That of course is a very sign, but what concerns me is that the 0.94 level looks to be rather supportive. Because of that, I want to see a daily close below that level in order to start shorting this market again. As far as buying is concerned, I'd be hard-pressed to find a reason to, at least as things stand at the moment.