FOREX technical focus for the week of 17 March 2014

EUR/USD


The EUR / USD pair currently has a huge uptrend. That’s simply because of the economic data of the Euro zone is remarkable since the beginning of this month. Similarly, the US Dollar is still struggling due to poor economic data. Currently the price level is above the trend line of 2009 & 2011 highs which indicates the blue trend line. My personal opinion is this pair will continue towards 1.4xx or even higher within the next week and we are not willing to sell this pair at the moment.


GBP/USD


This pair initially fell during this week, but found enough support at the 1.6616 level. Currently, the GBP/USD at consolidation area of 1.6500 -16750. You can clearly see a shooting star and a hammer on this chart. However, my personal opinion is this pair will reach 1.6750. It’s depends on the economic data of GBP and USD. This week is very crucial for both GBP as well as USD, because lots of high volatility data have to release in this week. Breakout below the 1.6000 will target 1.6500, hopefully can’t expect below that. Similarly, breakout above the 1.6750 will target the 1.68xx.


USD/JPY


This pair fell massively during this week. The disappointing Chinese manufacturing data significantly helped JPY to become stronger. The most important thing is will this pair going to pull back even next week? I’m quite unsure it. You can clearly see the 101.25 is a major support level or even 101.00. According to the historical candlestick patterns, there were buying pressure at the 101.25 level. My personal opinion is, this pair could go higher from 101.25 or 101.00 level and we have to wait at the right supportive candle in order to start buying this pair. The alternative scenario is, if the price breakout below the 101.00, the next target level would be 100.00. You should be very careful if you are trading this pair in next week.


USD/CAD


There is no any significant movement of this pair in this week. There are a Shooting star and a Hammer candlestick on this chart. I have a hesitation whether this shooting star suggest us a pullback or this hammer suggest us an upward movement. However, the next candle after the hammer is quite bullish. Technically, 1.1156 is a major resistance level at the moment. Every time this pair reached the 1.1156 level, there was a pullback. If this pair move upside my preference is 1.1156 or maybe 1.12xx. Similarly, pullback can be expected up to 1.10xx. My recommendation is, don’t sell this pair. Just wait at the right supportive candle in order to buy. On the other hand, don’t buy above 1.115x area because there are plenty of resistance in order to pull back. We are short term traders with this pair.

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