Weekly Trends: 2/19/12 – 2/24/2012

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 dollar weakness to continue within the range into the next week

Toward the end of the past week the buck started to show a weakness against the majority of the major currencies including most notably the euro. This scenario likely will continue to play into the next week. However, it is too early to say whether a new uptrend has developed. The indicators still point to a range-bound market.
 
At this point the technical picture points that he range-bound condition is likely to continue and the price will likely to oscillate between 1.3300 and 1.3150. Still the same type of opportunities for sufficiently funded scalpers. “Fundamentally” these fluctuations will be described according to the “risk appetite” and the same “progress with Greece’s debt.” 1.3300 is an important resistance level that needs to be watched closely in the next few days. It can be tested but chances it will fall in the next several days is not that great. But if it is pierced the price likely to continue to rise to 1.3400 the next major resistance level.
 

GBP/USD: The recent cable strength is losing its steam.
 
The strength that the sterling was developing during the last couple days of last week is likely to stall. The price is likely to go back and forth through 1.5800 in the next couple days. The major resistance level at 1.5900 is unlikely to fall with 1.5750 being new support level. It means that a range-bound condition is very likely between 1.5900 and 1.5750. 1.5750 is a minor support level and can easily be pierced later in the week. 1.5700 can become a new major support level in such case. At this point 1.5600 still looks fairly remote. Some good scalping opportunities can be found as no clear trend can be seen at this point.
 

USD/CHF: Flattening out to continue.
 
Does not look like is going to be a lot of action there. For the next week the price is likely to stay within 0.9050 – 0.9200 range and unlikely to deviate very far from these levels. 0.9000 is very important support level and the price can try to test it. Some opportunities for well-funded scalpers.
 

USD/CAD: Below the parity.
 
The price deviated a little below parity and likely to remain there for the next several days. The minor support/resistance level is likely to be around 0.9950 and the rate can bounce as well as go through it several times. It means that the price is unlikely to return to the parity within this time range. The narrow range between 0.9900 and 1.0000 is very likely in the next couple of days. Chances for returning to the parity are better later in the week.

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