Forex pairs in this Article » EUR/USD
By: DailyForex.com The
AUD/USDThe AUD/USD pair fell down to the 0.9250 level, and then bounced all the way back to form a hammer for the week. This looks strong to me, and as a result I expect the Aussie to do well in the interim. This market is going to have a bit of resistance at the 0.95 level, but I think ultimately it goes as high as 0.9750 during this move. The selling of this pair is going to be almost impossible as there is so much noise all the way down to the 0.90 level.
GBP/USDThe GBP/USD pair initially looked weak over the course of the past five sessions, but you can see that the market bounced enough to form a hammer-like candle, suggesting that we are going to go higher. However, I see that we are still on consolidation, and therefore would need to see a break above the 1.63 level in order to get overly bullish. If we do get that, I would expect the market to make a trip to the 1.65 level next, as it is the next large round number.
As far as selling is concerned, I would have to see the 1.5850 level broken to the downside in order to do so, and at that point in time I would expect to see the 1.55 level tested again. However, I believe this market is going higher ultimately.