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EUR/USD

The EUR/USD currency pair has rallied a bit during the course of the week to clear the parity level. By doing so, the pair looks as if it is going to continue to hang about the parity level, and I think that will be what happens over the next several sessions; price action may simply go back and forth in this general vicinity.

Rallies at this point in time should be shorting opportunities, happening at the first signs of exhaustion. The 1.02 level will more likely than not end up being a bit of a resistance barrier.

USD/JPY

The USD/JPY pair has rallied rather significantly over the past week to reach the JPY145 level. The JPY145 level is an area that obviously is psychologically important, but you should also keep in mind that the market can only go in one direction for so long.

The US dollar is overbought, so I think the pair may see a little bit of a pullback during the course of this week. The JPY140 level underneath should be supported, but if it breaks down below there, the pair is likely to go looking toward lower levels for buyers. Even if the pair does fall this week, I am not going to be shorting this market anytime soon.

AUD/USD

The AUD/USD pair has been very noisy over the past week, as the 0.67 level was tested for support. The 0.67 level has been supported multiple times, so it does make a certain amount of sense that the area would see a lot of noise, and I think that will continue to be the theme going forward over the next several sessions: that a major support level underneath will continue to cause buying pressure.

If the pair broke down below there, then the market would likely go much lower. On the upside, I believe that the 0.70 level is a significant resistance barrier that would be difficult to overcome.

GBP/USD

The GBP/USD pair has rallied this week, showing the 1.15 level as an area of some importance. The pair had recently seen support in that vicinity, so it does make sense that we would see a bounce in this area. Fading rallies will continue to be the approach I employ with the British pound, but I also recognize that the pair appears to be oversold. This week may be all about a bounce, but I have no interest in buying.

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