A week ahead (05/30-06/03)

GBPUSD

Cable tried to stay above 1.8300 but failed, then established a new low testing bids in the 1.8180 area and continued to move in a narrow range. More or less, the Pound looks quite exhausted after the major fall started in the 1.9100 area. Resistance starts at 1.8300 followed by 1.8430 and 1.8520. More critical levels are seen higher, at 1.8670, 1.8770 and 1.8880 but we don’t expect it to climb so high during the next weeks. Support is seen at 1.8187 followed by 1.8115 and 1.8060.
GBPUSD 4 hrs chart:

AUDUSD
The Australian Dollar is facing strong resistance in the area of 38.2 retracement of 0.7790-0.7535. Support was found at 0.7585 after two intraday bounces, forming a double bottom.
A break through 0.7640 won’t offer too much freedom for climbing higher because of the important resistance emerging in the 0.7660 area (50 fib of 0.7790-0.7535 and the downward trendline seen below on the chart). Important support follows the intermediate level of 0.7585 50 points lower, at 0.7535.
AUDUSD 4 hrs chart:

USDJPY
The Dollar continued to bounce on the trendline started at 106.54 on 05/17/2005 and managed to pass the major resistance at 107.76 which seems to be a reliable support now. A breach below this level will bring 107.25 and even 106.60 later, on focus. Important resistance is seen at 108.50. Minor resistance is near, at 108.25 and it will probably be tested again soon. Bullish sentiment is intact on both short-term and long-term studies. The weekly charts are pointing north, toward 108.80-109 area where important resistance may be tested.
USDJPY 4 hrs chart:

USDCAD

The dollar rose during the last week, establishing important resistance at 1.2690 on its path toward the major barrier at 1.2725. Even if the support level made by the trendline started at 1.2553 on 20 of May was good and held several tests, the dollar dropped below, triggering good buying opportunities in the area of the 50 retracement of 1.2355-1.2725. On the daily charts, this decline doesn’t look as a surprise. Major support is seen in the 1.2500 area, formed by the trendline started at 1.1985 on 22 of march, 2004. Therefore, the greenback’s bullishness is intact and expected to resume if 1.2500 will hold. If not, long term studies will bring the 1.22/1.23 area in focus with the trendline started at 1.1716 on 26 of November, 2004 and extended right through the lows of 15 to 22 of March, 2005.
USDCAD 4 hrs chart:

EURJPY
The pair continued to move in a narrow range of 100 points, despite the tests on both ressistance at 106 and support at 104.90, EURJPY remained steady. A break through 106.15 (50 fib of 137.95-134.35) may establish a bullish sentiment, pulling the Euro higher, towards 137. Major support is seen at 134.90. Interim support stands at 135.25. If these two levels won’t hold, Euro will face another important support at 134.50.
EURJPY 4 hrs chart:

GBPJPY
Important mid-term support was established by the trendline of 195.53 to 196.07, therefore, it is possible not to see the pair below 196 during the next few days. The British Pound declined versus the Yen after testing the major resistance at 197.70 but it looks ready to give a second try. Resistance follows 197.70 at 199.20.
GBPJPY 4 hrs chart: