This week in forex markets is poised for a news driven fiesta, with inflation and interest rate decisions out of Australia, Canada, Japan and the Euro zone.  It’s weeks like these where traders may be more hit and run instead of waiting for surprise outcomes from central bank decisions.

The EUR/USD found itself in a holding pattern last week.  While first making a run up initially to the dynamic resistance area we projected at 1.1665/75 with a high of 1.1668.  This price action also fulfilled a bottom to top projection at 1.1665 before closing the week out at 1.1645.  The daily chart gave us a close above 1.1640, breaking the previous downward trend.  While the weekly charts still call for lower levels, we must wait to see if the daily chart says otherwise.  EUR/USD will find initial dynamic resistance at 1.1680/90 and dynamic support at 1.1615/05. 

GBP/USD broke above 1.3800 and traded near the high of 1.3833 on three separate days.  This price zone will now become a sticking point for the weekly chart. If we cannot close above last week’s high of 1.3833 and get a daily close below 1.3740, GBP/USD will see acceleration downwards.  1.3670 and 1.3590 will find initial dynamic support.

USD/CHF continued it’s downward price action closing near the low of the week at .9155.  There is nothing standing in the way of this pair as it grinds it’s way lower.  We see more of the same this week, with initial dynamic resistance at .9200/10 and dynamic support at .9110/00 and then again at .9080/70.

USD/JPY made a new high last week near 114.70 before closing lower than the prior week at 113.45.  Daily closes below 113.40 will trigger the weaker short term stop losses and trigger sharp selling.  If this occurs, we see quick movement to 112.60/50 and then again at 111.80/70.

USD/CAD looks like it found it’s near term bottom at 1.2290 last week.  This week we see an initial pullback to 1.2410/20 and possibly 1.2450/60 before resuming the downside.  Were looking for initial dynamic support at 1.2265/55 and will monitor how the week closes.  This pair still has a lower target in the medium term to 1.1800 as we referenced in a prior report. 

AUD/USD continued to gain strength last week reaching a high of .7545 before closing at .7465.  In order for this renewed strength to continue, we need to see a weekly close above .7480, which would break the weekly downtrend.  This week we are watching initial dynamic resistance at .7535/45 and dynamic support at .7415/05.

NZD/USD also had a strong week rallying to .7218 before closing the week near .7150.  For this pair to accelerate further, it needs to see a weekly close above .7170 to break the weekly downward trend.  Look for initial dynamic resistance at .7225/35 and dynamic support at .7090/80.