Weekly Trends: 3/4/12 – 3/9/12

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 slow down in the beginning of this week

During the second half of the last week the dollar was gaining against all the majors including the euro due to classical “risk aversion.”

The dollar is becoming overbought so the chances are that the euro decline is going to pause in the beginning of this week.

There is no indication at this time that volatility is about to increase so a narrowing range between 1.3250 and 1.3150 is likely for the next several days. The support at 1.3100 can possibly be tested. No indication of an incoming breakout at this time.

The price is likely to hover around 1.3200 for the next couple days. Common indicators should be fairly accurate in pointing to the direction of the price on the hourly or shorter charts.

Rather thin scalping opportunities at this time. Make sense to wait a little.
 

GBP/USD: The similar scenario for the sterling.
 
The dollar started to look overbought by the end of the last week so the cable’s recent weakness is likely to pause shortly. No indication that volatility is about to change and no close breakout are in the site at this time. A narrow range between 1.5800 and 1.5900 is likely for the next several days. The 1.5700 support can be possibly tested. Scalping environment at this time.
 

USD/CHF: The recent uptrend is likely to pause.
 
Likely still is not going to be a lot of action here. No sign of a close breakout or increasing volatility. For the next several days the price is likely to stay within a narrow 0.9100 – 0.9150 range and unlikely to deviate very far from these levels, which means that 0.9200 can also be possibly tested. Very thin scalping opportunities.
 

USD/CAD: Creeping back to the parity.
 
The price will likely try to return to the parity in the next week. A mildly bullish scenario for the pair. It likely will look midly overbought at the parity so no clear uptrend can be seen yet at this time.

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