GBP/USD
The British pound fell initially during the course of the week but found enough support below to turn things around and form a bit of a hammer. By doing so, it looks like the market is ready to try to go higher and I think if we can clear the range for the week, we could see this market go to the 1.48 level. I don’t really have a scenario in which I’m comfortable selling at the moment, as this market is showing too much support.
EUR/GBP
The EUR/GBP pair had a very strong showing early in the week, but turned back around to form a bit of a shooting star. By doing so, it looks as if the market is going to continue to try to find support below, and as a result we are more than likely going to see buyers enter this market and push this market higher. I’m looking to buy pullbacks on signs of support and I believe that the 0.75 level is the floor.
USD/CAD
The USD/CAD pair went back and forth during the course of the week, essentially forming a neutral candle. This is a market that should eventually go higher, but we need to see the 1.40 level above broken in order to make me comfortable buying this pair. I have no interest in selling, and I believe that there is a massive floor in this market somewhere near the 1.35 handle.
USD/JPY
The USD/JPY pair fell pretty hard during the course of the week, and I feel we are now going to try to test the 110 level. We did get a bit of a bounce towards the last couple of days, but quite frankly I think there will be sellers near the 150 level. I would not hesitate to start selling in that area on signs of resistance and exhaustion.
