A week ahead(05/09-05/13)

Projected bearish targets: 1.2750, 1.2700 and 1.2650
Projected bullish targets: 1.2960, 1.3040 and 1.3170
EURUSD 4 hrs. chart:

GBPUSD
The British Pound was well supported in the 1.8910 area where it reversed and rose to 1.9060. But this level of 1.9060 was also a strong resistance and the sterling wasn’t able to break it so it is back at 1.8900 now. Depending on this level which is really a strong support, the next market direction will be decided very soon. If cable will reverse during the first days of this week, there will be good chances to see it again testing the 1.9200 area, otherwise it will continue to lose ground versus the dollar towards the 1.8600 zone. Best thing to do is wait a bit and see if 1.8900 will hold.
Projected bearish targets: 1.8800, 1.8670 and 1.8530
Projected bullish targets: 1.9130, 1.9200 and 1.9275

GBPUSD 4 hrs. chart:

USDJPY
Even pushed by the helpful NFP, the dollar didn’t rose too much versus the Yen. The important thing is that it got out from the downward channel, but we are not sure yet if this is a reversal sign or only a retracement encouraged by the greenback favoring economic events. But even if this is only a retracement, it is possible to see the dollar rising towards 106.50 which is the 50% fib of the 108.85-104.20 move. First important resistance is seen at 105.45. Support was found at 104.20. More supportive floors are seen at 103.70 and 102.35. On the daily studies, momentum is negative and the dollar needs to recover about 170 points versus the Yen, in order to reestablish the bullish sentiment of this pair. It is not an impossible target, there are only 170 points which also mean a break through 106.50. On the other side, a fall back into the downward channel seen on the chart will give more clues about the potential tests in the 102/101 areas.

Projected bearish targets: 104.20, 103.60 and 102.80
Projected bullish targets: 106, 106.70 and 107.50

USDJPY 4 hrs. chart:

AUDUSD
The last test of the 0.7830 resistance failed, but anyway, this pair has been moving on nice swings lately and it was quite predictable using the real basics of technical analysis, like the trendlines seen on the below chart. The dollar rally on Friday pulled the pair down right on the major support formed by the trendline of 0.7635 to 0.7725 and 0.7745 now. A breach of this trendline will focus our attention on the next potential target which is seen in the 0.7690 area which is a support level formed by the downward trendline started at 0.7800 high to 0.7745 and also 0.7725, where it cutted across the first trendline we’ve told about earlier. Maybe 0.7830 is one hard to reach objective now, but 0.7810/15 seems to have good chances of being visited by the pair during the next few days.

Projected bearish targets: 0.7700, 0.7650 and 0.7600
Projected bullish targets: 0.7810, 0.7850 and 0.7900

AUDUSD 4 hrs chart:

USDCAD
After the US Dollar rally, support was found at 1.2385 and it will probably hold longer, supporting a trend correction towards 1.2550. Subsequent floors are now seen at 1.2310 and 1.2236. In the northern area, resistance start at 1.2490 and it is followed by 1.2570 and the current record high of this year. A resumtion of the current upward trend is supported by the trendline starting at 1.983 (03/22 low) and extended to 1.2385 of last Friday. Focusing a bit on the daily studies, we can easily see that the upward trendline will remain intact even if the pair will fall towards the 1.2200 area. Only a breach in the 1.2200 area will cancel the upward trendile started at 1.1710 on 11/26/2004 and extended through 1.2 during March, 2005. As a mid-term objective, 1.22 is probably next to focus at.

Projected bearish targets: 1.2330, 1.2240 and 1.2200
Projected bullish targets: 1.2490, 1.2560 and 1.2600

USDCAD 4 hrs. chart:

EURJPY
Nothing special happened to this pair during the previous week, but only a boring consolidation which probably triggered a lot of false bullish signals, confusing people with the clues of a reversal. Well, the 138.85-135 area was a reliable support zone but not for too much time, being broken on Friday, because of the mass Euro selling caused by the NFP. What looks pretty possible now, is a breach of 134.85 from the south, but with a lack of hopes regarding a potential climb above 135.80. The bearish momentum doesn’t give signs of changing dirrection on the daily studies yet. Anything looks risky right now, because of this total lack of clues on both hourly and daily studies. Support is now seen at 134.15, followed by 133.60 and 133.
EURJPY 4 hrs. chart:

GBPJPY
After several failed attempts of climbing above 199 in the last few days, the pair ended the week in the middle of the 198 area, probably being ready to continue its tests at 199 during the next few days. More or less, it is facing the same scenario as the EURJPY. Anyway, the consolidation process will get to an end somehow, probably soon. Support was found at 197.90. Resistance starts at 199, followed by 199.50, 200.15 and 201.40 higher. A potential retracement of the major downward move will aim the 200 area.

GBPJPY 4 hrs. chart: