The Forex Markets Change Focus To US Earnings Releases
The greenback should not make as many headlines this week as the focus for investors will be on companies earnings releases and less on economic data. The US dollar remained mostly range bound against the major currencies. The Euro/USD currency pair tested the top of its range of 1.42 at the beginning of the week and the bottom of the range around its support level of 1.3990 near the end of the week. With the currency pair trading around the low end of the range and according to several technical indicators, this pair maybe worth looking at to open a long position.
The US dollar/Swiss Franc currency pair broke down to support of 1.072 early in the week. It jumped off that level and back up to just under 1.09 resistance level and hung around it late in the week. The rebound was in contrast to some of the technical indicators which makes it difficult to determine a short term trend. In addition it was rumored last week that the Swiss National was getting involved in the currency markets again and it is unclear the affect they may have on the Swiss Franc in relation to the US dollar and the Euro. The US Dollar/Swiss Franc currency pair is also having large trading swings around the exponential moving averages, but should remain relatively range bound for the next week.
The British Pound/US Dollar currency pair in the beginning of July is trading between 1.63 and 1.67. The currency pair has been stuck in a pretty tight range for around a month. A couple of the technical indicators are showing a trend that is moving to the downside and a breakdown of the support level at 1.6330 might be coming in the near future.
The US Dollar/Japanese Yen has been swinging wildly around its exponential moving averages and has had a very wide range over the past one to two weeks of 95.4 to 97. There is pretty clear short term resistance around the 97 level and support levels around 95.3.
The US Dollar/Canadian Dollar is still trading around the highs of its short term, several month range. Over the past 2 weeks the currency pair has bounce off of its near term resistance level of 1.165 two times. It has also hit its near term support level of 1.145 three times. After just bouncing off of the resistance level it should continue downward this week, however foreign exchange traders will be watching oil prices which could either accelerate its move to the downside or make the pair rebound and breakout above its highs.
The Australian Dollar/US Dollar broke below short term support 0.7984, then traded straight down to 0.7900. While it rebounded back to 0.7958 the trend still looks bearish and overall downtrend should take it to 0.7785, the next support level. The Australian economy is also very dependant on natural resources like oil and gold, commodities which had a difficult week to start off the month of July.
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Tags: Forex