Forex for the week of June 30, 2014
The markets ended the week testing a couple of crucial levels. Because of this, there is a bit of focus on two specific pairs at the moment. The GBP/USD and the USD/CAD pairs both intrigue us, and as a result we will be watching. Both could make serious moves during the upcoming week, and will have to be monitored as both could be making major decisions in short order. With this, let us start out by looking at the GBP/USD pair…
The GBP/USD pair has closed above the 1.70 level for the second week in a row. However, this past week saw the sellers try to make a stand as we fell back below the 1.70 level. The buyers then stepped in and pushed the markets back up. The resulting action formed a hammer, which of course is a strong sign. The market now looks as if the buyers are going to support it going forward. The hammer at the top of the uptrend suggests that there is enough pressure below to finally break out. This breakout could be significant enough to start the next leg up. This would have the GBP/USD pair heading towards the 1.75 level. The market should continue to offer buying opportunities if we get that move, as it will dip from time to time.
gbp/usd Weekly
Over in the USD/CAD pair, we also see potential USD weakness. However, we have a significant barrier to break through if the down trend can continue. The uptrend line meets the 1.06 level, which of course has been supportive in and of itself as well. The area has been important for some time, and because of this we feel that the market should have a lot of support in the area, but this is a market that should be making a decision in the next week or two. The way this market closes over at the end of the week will be vital, as we should determine the next larger move. We could bounce, and continue the uptrend as we have been in it for some time. On the other hand, a close below the 1.06 level sends this market looking for the parity level. In the mean time, we are watching…
usd/cad Weekly
With that being said, this is what we are watching this week:
Mon – Canada GDP
Tues – Aussie Cash Rate and RBA Statement
Weds – China Non-Manufacturing PMI
Thurs – EUR Minimum Bid Rate, USA Non-Farm Payroll
