EUR/USD Technical Analysis

The EUR/USD pair exploded to the upside the previous week. The move saw the pair break through the 1.40 level as the EU finally came out with a bailout plan. The market seems to like what it has learned so far, and the pair rose directly to the next cluster of trades on the chart. The pair looks like it has risen a bit too far too soon, and there will always be the chance of bad news coming out of the EU going forward as more details get scrutinized. The pair looks like it wants to run to 1.45, but a pullback would certainly be possible form this parabolic snapback. As long as we see 1.40 hold as support, we like buying dips at this point.

GBP/USD Technical Analysis

The GBP/USD pair took off this past week, and even managed to break above the 1.60 level – an area that had been very resistive. The market shot straight up to the 1.6150 area, which was supportive several months ago. This area could produce some resistance, and with the parabolic nature of this move – provide a much needed pullback. Until we close on the daily below 1.60 though, we are not willing to sell this pair. We like the idea of seeing a daily candle close somewhere near 1.60 showing a supportive tone – and then buying. If we break below 1.60, this pair becomes another selling pair at that point.

USD/CHF Technical Analysis

The USD/CHF fell during the week, and is currently heading down towards the all-important 0.85 level. The area is the beginning of the Swiss National Bank’s intervention candle, and as such we feel that the pair should be supported in this area. We are looking for supportive candles in the 0.85 zone, and will wait until then to buy. We cannot sell – the SNB will make sure to punish those that do. A daily candle will do just as well as a supportive weekly one at the 0.85 level it should be said.

USD/JPY Technical Analysis

USD/JPY fell again this past week, and looks set to test the sub-75 level. The Bank of Japan will not be happy about this development, and could intervene as well. The Non-Farm Payroll report out of the US on Friday of this coming week could provide a lift as well if it surprises to the upside. The scenario in this pair is that it is a “buy only” pair at this point, although one has to have a bit of faith in order to do so. It could be a long-term buying opportunity, but at this point in time – it’s not a trade, it’s an investment.