Monday, May 7, 2012

Forex Techncial Analysis

EURUSD: Opened the week below 1.3000 on weekend election results in the EU.  Momentum for the rest of the week could be contingent on where we close today; above or below 1.3000.  As the chart below shows, the pair has been in a 4 month trading range between 1.3000 and 1.3500.  Therefore, even with the current Euro weakness, the pair may need to see much more selling pressure to bring the EURUSD out of its range.  

GBPUSD: Broke below 1.6150 support last week but then found buying interest just above 1.61000.  The constant step up of demand on any weakness bodes well for the GBPUSD possibly heading higher if it can get any assistance from UK fundamentals.

USDJPY: Pair dropped below 80.00 support last week, but then found buying interest at its April lows of 79.60.  A break below 79.60 could trigger further selling pressure to the 79.00 figure.  However, if the pair manages to retrace back above 80.00, even with Friday’s negative Non Farm Payrolls figure, it will reveal that real buying demand is stepping up in the pair and could provide upside momentum for the rest of the week.

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