EUR/GBP Forecast

  The EUR/GBP continues to hover around the 0.88 level, as it stalls because of the over exuberant buying recently. The pair looks parabolic, and a pullback would be good for the overall health of the uptrend. Look for any weakness to be supported at the 0.86 level, and strength to be capped at 0.90 as well. In the meantime, a signal isn’t going to be clear until we decided the issue of 0.88.  

EUR/USD Looking at the weekly chart, you can see three lines that are plotted representing the three main levels that price has been bouncing around over the last few weeks. These levels, 1.3750, 1.36, and 1.3450 have all been support and resistance in the past as well. The previous weekly candles have produced three very bearish ones in a row. However, this last one ended up closing very green, and as such – any shorts would have to be reconsidered. On the flip side of that equation is the fact that the top resistance line did hold this week. Until we see a daily close over 1.2750 or a close below 1.3450 – we must assume that it will continue to consolidate. AUD/USD The Aussie is forming an ascending triangle on the weekly chart, albeit a sloppy one. When looking at the big picture, you can see we have found massive support at the previous all-time high of 0.98, and have formed the triangle...

Dollar appreciated against majors after the housing data rose unexpectedly for the fifth-straight month, along with remarks from the US Treasury that the US will seek to restore investors’ confidence with a stronger dollar. The US treasury Secretary Timothy Geithner stated that the world’s reserve currency will remain strong while adding that it’s not in the best interest of nations to devalue the currency. The dollar sank over the past few months on remarks from the Federal Reserve Chairman; Ben Bernanke for the possibility of providing markets with another round of stimulus measures, offsetting the gains acquired by the dollar and forced a downside trend to prevail in markets. The dollar rose in today’s trading session as China’s interest rate increased, discouraging investor’s demand for risk and causing the dollar to extend its gains against majors. The US dollar index, which tracks the performance of the dollar against majors ascended on the daily scale to trade at 77.89, compared with the opening levels of...