Weekly Trends: 3/11/12 – 3/16/12

Forex weekly trends – an overview of the trends in the forex market for the past week with likely developments for the next week.

 
EUR/USD: The dollar appreciation against the euro is likely to pause in the beginning of this week.
 
Still a mildly bullish scenario for the next couple days.Toward the end of the last week the dollar was gaining against all the majors including the euro.

The dollar likely to look overbought below 1.3100 so the chances are that the euro decline is going to pause in the beginning of this week and the price will try to reach 1.3200. The pair likely to look overbought above 1.3200 at this time, so it likely to retract back. No clear uptrend at this time.

Range between 1.3200 and 1.3100 is likely for the next several days. No indication of an incoming breakout at this time.

Common indicators should be fairly accurate in pointing to the direction of the price on the hourly or shorter charts.
 

GBP/USD: Narrow range for the sterling.
 
The price was falling down toward the end of the last week as the dollar was strengthening against all major currencies. The pair likely will start to look oversold in the vicinity of the major support level at 1.5600 and chances it will bounce back. A narrow range between 1.5600 and 1.5700 is likely for the next several days. Longer outlook for the pair is still bearish.
 

USD/CHF: The recent uptrend is likely to pause.
 
Likely still is not going to be a lot of action here. The pair looks overbought in the vicinity of 0.9200 so the recent uptrend is likely to pause. For the next several days the price is likely to stay within 0.9250 – 0.9100 range and unlikely to deviate very far from these levels. The longer outlook is bullish.
 

USD/CAD: Back below parity – a notable exception.
 
As expected the price reached the parity during the last week. At that level it looked mildly overbought so some correction back below parity is likely in the next several days of this week. It likely will look mildly oversold in the vicinity of 0.9850 so the price likely will stay within that range for the next several days. The longer outlook is bearish.

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