CHF/JPY
The CHF/JPY pair pulled back during the course of the week, but as you can see found enough support to bounce and form a nice-looking hammer off of the 112 level. This is an area that has been supportive in the past, so quite frankly is not a big surprise to see that it was this past week. On top of that, the market appears like much of the other Japanese yen related pairs, as the dead of summer approaches. It appears that the Japanese yen will probably weaken a little bit, and as a result I feel that this market is going to consolidate further, and therefore bounce above the top of the hammer probably send this market looking for the 117 level.
NZD/USD
The NZD/USD pair during the course of the week, but did close above the 0.8450 and up, something that I feel is rather bullish. The market doesn’t look like it’s ready to take off to the upside quite yet, but the truth of the matter is that we did not break down below the floor in the market for any length of time, and as a result I think that we will probably have a bounce. A break above the top of the candle for the week has me buying this pair and aiming for the 0.87 handle.
EUR/USD
The EUR/USD pair fell during the course of the week, but as you can see found enough support below to turn things back around and form a nice-looking hammer. This is the second hammer in a row on the weekly chart, therefore I feel that a bounce is probably coming with that, I think that it’s probably a safe bet to think that the market will more than likely test the 1.35 handle again. We can get above there, then we have enough bullish momentum in my opinion to continue going higher. Nonetheless, expect choppy conditions as per usual with the EUR/USD pair, and as a result I think longer-term traders will still probably be best served ignoring it.
EUR/GBP
The EUR/GBP pair initially fell during the course of the week, but after enough time we managed to bounce rather significantly and form an impressive looking hammer. A break above the hammer top, which is essentially the 0.80 level is enough to convince me that the downtrend might very well be in trouble now. With that, I think that we would first go to the 0.8150 handle, and then eventually the 0.84 level. On the other hand, breaking the bottom of the hammer would be a very bearish sign.
