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GBP/USD

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The British pound rallied significantly during the course of the trading week to test the 1.28 level. This is an area that is a large, round, psychologically significant figure, and many will be paying close attention to see if the resistance does hold.

However, the major thing that we need to pay attention to is the fact that this weekly candlestick is much stronger than the ones that preceded it, and it appears to be closing toward the top of the range.

DAX

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The German index initially pulled back just a bit during the course of the trading week, but it then found support at the EUR18,000 level. Therefore, I think there may be a bit of a bounce that could drive this market higher.

Ultimately, the market could go looking to the EUR19,000 level, which is an area that has previously witnessed a lot of resistance. Ultimately, this is a market that needs to grind away and work off some of the excess froth that we have seen for some time.

GBP/CHF

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The British pound had a very strong week against the Swiss franc, but it’s worth noting that the last three days of the week all formed shooting stars. In other words, I think we will see a short-term pullback before buyers come back in order to take off to the upside.

The 1.13 level underneath appears to be a massive support level just waiting to pounce, especially now that the 50-week EMA is coming into the picture. If we were to see a break above the top of the candlestick for the week, such a move could drive the market towards the 1.17 level, where the 200-week EMA is located.

EUR/GBP

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The euro initially tried to rally during the course of the week, but the 0.85 level continued to serve as a major resistance barrier. That is an area that has seen a lot of support in the past.

That being said, the EUR/GBP market ended up forming a bit of a shooting star, so I think the currency pair could be ready to drop at this point, perhaps looking towards the 0.84 level underneath. In general, this is a market that I think will continue to be very noisy.

USD/CAD

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The US dollar fluctuated during the course of the trading week against the Canadian dollar. It is worth noting that the 1.36 level remained supportive, with the 50-week EMA sitting just below there to show signs of life.

All things being equal, this is a market that I think will continue to bounce around between the 1.36 level and the 1.38 figure. This is a pair that also got a bit of a boost due to the fact that the unemployment figures in the United States were positive, while the Canadian employment numbers were weak.

CAC 40

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The Parisian index moved all over the place during the week, but the EUR7500 level continued to offer massive support, and this past week has seen quite a strange turnaround. At this point, it looks like there may be a bit of a rally. 

If the index can break above the top of the candlestick for the week, this would open up the possibility of a move toward the EUR7900 level. Anything above there would obviously be very bullish, perhaps opening up the possibility of a move to the EUR8300 level. Conversely, if we were to see it break down below the EUR7450 level, then the index could drop even further from there.

EUR/JPY

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The euro rallied rather significantly during the course of the trading week against the Japanese yen, as it reached above the JPY175 level. If we see it pull back from here, I think there would be plenty of buyers willing to come in and take advantage of “cheap euros,” as the interest rate differential between the two currencies will continue to be quite wide. Remember, traders get paid to hang on to this pair. You should be looking for value to take advantage of.

USD/NOK

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The US dollar has been very range-bound for the last five weeks against the Norwegian krone, and I think that will continue to be the case going forward. However, if the dollar can break above the 10.75 level, it’s likely that we could see it continue to go much higher. On the other hand, if it were to break down below the 10.40 krone level, then we could see the market continue to drop toward the 10 NOK level.

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