Weekly Trends: 2/05/12 – 2/11/2012

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 uptrend for the EUR/USD came to the end.

Technical indicators point to probability of range-bound condition for the incoming week and strategies appropriate for the range-bound market should be used.

1.3100 is a major support/resistance level but likely to be penetrated in the both directions. Though unlikely but If 1.3100 is penetrated the recent uptrend can be coming to the end. No clear trend signals at this time. The “magical” level support of 1.3000 is very unlikely to fall. The major support level will be at 1.3000 and the major resistance 1.3200. Testing of this major resistance at 1.3200 can signal that a new uptrend will start to develop. If this level is penetrated the rate could climb to 1.3300.

GBP/USD: The recent strong uptrend is “decided to take a rest” for now.

1.5800 is still going to be the major resistance and support level, and the price likely will be going back and forth around this level in the next couple days. It means that range-bound condition is very likely with the major support level of 1.5700 and the major resistance at 1.5850.

USD/CHF: The uptrend has ended.

For the next week 0.9200 is the major resistance and support level, and the price will be going back and forth around this level. 0.9150 likely to be a minor support level with 0.9250 being a minor resistance. Unlikely to test 0.9300.

USD/CAD: USD/CAD was range bound and oscillating around 1.0000 .

The same scenario is likely to continue. The major support/resistance level 1.0000 is definitely should be considered in next week and the rate can bounce as well as go through several times. Likely range will be between 1.0050 and 0.9900.

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