On Friday afternoon the Cable closed right on its up- trending support line, and on solid support from last week’s low. Based on the technical strength my outlook for this pair remains bullish, though I believe the market needs a fundamental catalyst to justify a move higher.
For yet another week the Euro was range-bound, trading between 1.2880 and 130.80. However, the fundamentals are looking a bit more bullish for this pair in the long term. If buyers can push the Euro through 1.31 it could signal the next leg higher. Investors should remain patient until this market moves from its current range.
USD/JPY
This pair continues to be volatile, trading off 120 support and 121.75 resistance. A sustained move above 122 would be bullish in the long term. However, there is still quite a bit of uncertainty about what the bank of Japan will do with interest rates, and a rate hike by the BOJ could drive this pair down through support.
USD/CHF
Once again this pair was unable to push above 1.25 resistance, and until that is broken it remains an attractive short entry. On the downside 1.24 remains strong support and a break below that level would signal a reversal of the recent strength.
AUD/USD
The Aussie actually broke out through resistance on Wednesday and was able to hold above the recent range going into the weekend. This pair has quite a bit of overhead resistance between .7800 and .7900, so I expect any push up fro the current to be met with some heavy selling.
USD/CAD
After weeks of trying to break above 1.1850 the exhausted buyers finally stepped aside and sellers to control. The 1.17 level should provide a bit of short term support though this pair rallied without any real pullback for months, so a correction should not come as a surprise. At this point I would look to short any bounce up from this level with a stop above 1.1830.
Keith Amirault
Odom & Frey
www.odomandfrey.com
Call us at 1-866-636-6378
Comments are closed.