FX Charts to Watch This Week

“The riskiest thing you can do is get greedy.” – Lance Armstrong

Hello. This week will be quite busy, some of the key events in the Forex Calendar being the RBA Interest Rate Decision on Tuesday, Bernanke’s Testimony, Trichet’s speech, the ECB Interest Rate Decision, the US ADP Nonfarm Employment Change, the Initial Jobless Claims and, of course, the NFP and Unemployment Rate at the end of the week.

Let’s take a look at some charts worth watching this week. I will post more in the coming days.

EURUSD

Last week’s recovery may continue as the upside is still under pressure and Friday’s pullback from 1.3840 to 1.3725/50 could be part of a corrective cycle. As I mentioned one week ago – the market reacted in different ways when reaching 1.3750. It served both as support and resistance and last time it was breached after 4 weeks of tests. It was providing support then – see the weekly charts in October, 2010. Now it provides resistance and last weekly candle closed near the 1.3750 level – at 1.3753 on my charts, so we can’t speak of a weekly breakout yet. I remain bullish on EURUSD for now and will look forward to buy on strength or minor pullbacks after potential rallies. Below $1.36 – I’ll join the bears.

USDCHF

Recent Middle East turmoil has pushed the Swiss franc to record levels against the US dollar. It’s hard to imagine nowadays any reason why this pair would switch direction. All recoveries since October lasted for 2 – 3 weeks max. Selling on potential pullbacks towards .9500 looks like a viable scenario.

AUDUSD

All eyes are again on the record high as the Aussie dollar enjoys a bull run – breaking the triangle on Friday, before closing near 1.0200. Soaring commodity prices are pushing the Australian dollar higher and current charts are saying that there’s more upside to come.

USDJPY

Important support is under pressure after last decline on Friday. Next one comes at 81.00 – on the way to 80.00/30.

USDPLN

The dollar recovered some ground after the decline from lase November to February but this recovery seems rather corrective. It failed to overcome 2.9200 on last tests so it’s probably best to look for selling opportunities on weakness.

Well, this is all for now. Have a great week!

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Post tags: AUDUSD, Ben Bernanke, ECB, EURUSD, Interest Rate Decision, RBA, Trichet, unemployment, USDCHF, USDJPY, USDPLN