Weekly Trends: 2/26/12 – 3/2/12

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: “Profit taking” likely to play a role during this week so the dollar weakness likely to slow down

During the majority of the past week the buck was showing a weakness against the single currency. Fundamentally, classical “risk appetite” was a contributing factor. However, at this point the indicators suggest a range-bound market.
 
The next week’s technical picture likely to be within a range between 1.3300 and 1.3500. These are the two very important technical levels. The both levels – 1.3500 resistance and 1.3300 support can be tested but chances they will fall in the next several days is not that great.

It would make sense to buy when the price is in the vicinity of 1.3300 and short when it is in the vicinity of 1.3500. Variety of indicators can be used to establish entry and exit points.
 

GBP/USD: A mildly bullish scenario for the cable.
 
The strength that the sterling was developing during the last couple days of last week is likely to continue. The price is likely to advance slowly very close to 1.6000. Chances that the major resistance level of 1.6000 will become a new support level is not that great. Likely is a widening range between 1.6000 and 1.5800
 

USD/CHF: Likely to bounce back to 0.9000.
 
Likely still is not going to be a lot of action here. For the next week the price is likely to stay within 0.9050 – 0.8950 range and unlikely to deviate very far from these levels. The price is likely to return and to stay close to 0.9000.
 

USD/CAD: Back to below the parity.
 
As expected the price has returned to the parity. At this point it looks overbought above the parity so it likely to return back below 1.0000 and stay there for the next couple days. The narrow range between 0.9900 and 1.0000 can widen slightly but still continue to be the likely scenario.

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