Forex Weekly Trends: 3/25/12 – 3/30/12

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: Still a mildly bullish scenario for the next couple days but correction is likely.

Toward the end of the last week the pair appreciated nicely due to so-called “risk appetite.”

The pair looked overbought a bit above 1.3250 so the chances are that we will see shortly a very modest dip prior to the price resuming its way up. It will likely try to teach 1.3400 in the next couple days. At this point it looks like it will be overbought somewhat above 1.3350 so another modest dip will likely to follow. The same scenario likely to play over and over again during this week – an appreciation followed by a dip. The weekly picture is still mildly bullish but no a powerful uptrend can be seen at this time. Similarly to the last week, unstable volatility is very likely.

Range between 1.3200 and 1.3400 is likely for this week – oversold condition below 1.3200 and overbought above 1.3400.

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

Should be plenty of scalping opportunities at this time.
 

GBP/USD: No much upward momentum – choppy price movements.
 
No strong upward or downward momentum can be seen at this time. But some creeping up is likely. We will likely see the same choppy price action similar to the last week. The pair likely will start to look oversold below 1.5800. It may test 1.6000 – extremely important technical level. A range between 1.5800 and 1.6000 is likely for the week. The longer outlook is slightly bullish at this time.
 

USD/CHF: Downward momentum is likely to continue.
 
Slow decline of the price is likely to continue during this week. The price likely will try to test 0.9000 – very important technical support level. The pair likely will look oversold below 0.9000 and is unlikely to fall very far from this level. For the next several days the price is likely to stay within 0.9150 – 0.9000 range and unlikely to deviate very far from these levels. The longer outlook has is slightly bearish at this time.
 

USD/CAD: Likely back to parity .
 
As expected the price reached the parity during the last week. It likely will look overbought above the parity so the nice last week’s uptrend is likely short-lived. The pair will likely look oversold below 0.9900 so the price likely will stay within 0.9900 – 1.0000 range during this week. The longer outlook has changed to neutral – slightly bullish.

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