By: DailyForex.com
AUD/USD
The AUD/USD pair fell during the entirely of the week, but the 0.90 level offered enough support to push the market higher, and form a hammer. This hammer suggests that the obvious 0.90 round number for support looks likely to cause a bounce, one that is probably overdue at this point. The 0.9250 level looks like it could be resistive though, so any move higher will probably meet a bit of choppiness. If we can get above that level, I think this market will try to reach the 0.95 handle. The move would be a significant one, but still well within the downtrend that has been the hallmark of this pair for some time now.
EUR/USD
The EUR/USD pair initially fell during the week, possibly in preparation for the Non-Farm Payroll number. The numbers came out a little higher than expected, but at the end of the Friday session, you can see we went much higher. This is because traders are looking at the Federal Reserve and think that it can’t taper quite yet. Because of this, the US dollar should continue to weaken against the Euro overall. I see this market hitting 1.38, and then the 1.40 level.
EUR/JPY
The EUR/JPY pair initially fell as well, but shot straight up during the week. The candle looks strong, and the Yen has been getting beaten up across the board. This pair is typically sensitive to global risk appetite, and as a result the market looks like it is trying to “cheer up.” This should continue to drive the price of this pair higher, and the fact that we have closed the week above the psychological significant 140 level tells me that this market is ready to go even higher. Because of this, I expect to see this pair test the 145 level over the next several weeks. If we get a pullback at this point, I see it as a buying opportunity.
USD/CAD
The USD/CAD pair initially surged higher, continuing the move higher that we have seen for the last several weeks. The market pulled back by the end of the week, and this caused a shooting star to form, which is of course a bearish sign. However, I think there is a significant amount of support in the area of the 1.06 level. Below there, I would expect even more support all the way down to the 1.05 level. It isn’t until then that I am going to be selling this market. At this point, I would love to see a supportive candle below, or a break above the shooting star on a daily close.
