The Australian dollar spent most of the week falling, but on Thursday and Friday we started to get signs of life again. The weekly chart has formed a candle again, which of course is a very bullish sign. I think that the market could very well find itself bouncing during the week, as the 0.7350 level has offered significant support yet again.
The US dollar has been very noisy against the Japanese yen overall, but we continue to be consolidation bound, between the ¥109 level on the bottom, and the ¥111 level on the top. I think that the market continues to go back and forth more than anything else, and I don’t have any interest in trying to second-guess where we are going now. I assume that we are going to stay within these two levels until we can break above the ¥111 level on a daily close. If that happens, then I’m willing to aim for the ¥112.50 level next.
The Euro fell during most of the week but got a reprieve on Friday as it was announced that European leaders had come to a basic framework for migration. While the details are thin, this shows just how important the situation was for the market. The 1.15 level has offered support again, so I think that every time we dip, if we can stay above that level value hunters will return to take advantage of the 1.15 level as massive support.
The British pound has been negative during most of the week as well, but just like the Euro, but found a reprieve at the end of the weekend ended up forming a hammer. The hammer of course is a very bullish sign and I think that at this point we will probably see buyers of dips in this market but I would anticipate a lot of choppiness this week.
This article provided by NewsEdge.