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A week ahead(02/28-03/04)

 

EURUSD
Looks like the retracement of the 1.301-1.328 is over and the pair is now ready to test the major resistance level at 1.3295 again. Additional gains will target the second resistance at 1.334 and 1.3385 later. We also have a bullish momentum developed after the last retracement at 50 fib level at 1.3145. Support was found at 1.318 followed by the trend line of 1.296 thru 1.301-1.3145. Major support is also seen at 1.3145 and 1.309.

USDJPY
Important resistance is seen at 105.95 followed by 106.46 and 107.23. Support starts at 104.63. Subsequent floors will emerge at 103.94, 103.34 and 102.34. New tests of the 105.95 resistance level are possbile. Additional gains will target the 107 area but we will be patient, paying attention the the 106.46 resistance level which is very important.

EURJPY
The pair looks a bit overbought on the daily charts, therefore a retracement is possible before any further gains toward the December 2004 highs in the 141.7 area. Major resistance is seen at 139.73. Additional resistance is seen at 140.14 backed by 140.65. Support was found at 138.82 followed 138.5 and 138.16. Subsequent floors will emerge at 137.42 and 136.60.

GBPUSD
The cable is about to test the first major resistance level at 1.925. If this barier won’t be strong enough to hold, we will see a rally toward 1.94 after a retracement. Important support is eyed at 1.9105 followed by 1.9055, 1.9 and 1.8937. Major retracement is possible after reaching the 1.93 level.

USDCAD
The breakout of the major resistance level at 1.3262 a few days ago was very important but the pair was a bit exhausted when testing the major resistance at 1.237. Several tests failed and it bounced back toward the support level at 1.236, finding support in the 1.239 area (trend line of 1.237 thru 1.238). The support level at 1.236 may be tested soon if the bottom in the 1.239 area won’t hold. A breach of the 1.236 support level will pull the pair toward the dips of 1.22 area. Subsequent floors are eyed at 1.2310 and 1.223. On the other side, a breach of the first res. Level at 1.247 may push the dollar higher where it will face the second resistance level at 1.25 and 1.26 later.

GBPJPY
A retracement is possible now, before a rally toward new record highs. Important resistance is seen at 202.36 followed by 203 and 203.66.
Also, a trend channel was formed in the last week. Support starts at 200.87 backed by 200.5, 199.75, 199.15 and 198.08. I don’t think that the 199 area will be seen during the next week but we have to be careful on potential 200.5 support tests.

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