Start of the week – major pairs overview

EURUSD : The pair had a good run to the upside last Friday, printing 1.2754 before closing around 1.2650,  this Monday’s open is mixed, but as long as we are trading above 1.26 we can assume more upward momentum is on the way. First resistance is expected around 1.2720, if breeched we might see levels as high as  1.2850 later into the week.

On the downside: dropping clearly under 1.26 should signal the end of the correction move , and the beginning of either another range trading period, or  another test lower towards the 1.2500 resistance level.

GBPUSD: exactly a month ago the pair topped at 1.4990, this morning we are 1000 pips lower, as GBPUSD finally manage to break under its major support at 1.4000, possibly heading to test 1.3950.
Note that a break of a few pips  under 1.4 does not  mean this support level is officially breeched, at least not when such an important support level is in question. First we want GBPUSD to clearly trade under 1.3950 for us to declare 1.4 as a goner. As long as we are trading close by 1.4, the pair can still find enough buyers to push it back to levels well above 1.4.

USDJPY: Last night, Japan’s current account report posted its first deficit in 13 years, this is bad news for the Japanese economy, what leads us to a weaker yen this morning. Many traders bet the pair will hit 100 this week. However, I take a more prudent approach, since the move from 92 to 99.7 was too quick, rising the chance  fore a down move correction.

Z.Georgi

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