Last week was full of news releases for many pairs and volatility increased in the latter part.  Daily charts provided limited insight, while weekly charts provided an outlook to future direction.  In the coming week we see the following:

EUR/USD did what it intended reaching a high of 1.1692 last week before closing at the lows on Friday at 1.1565.  In our forecast last week, we outlined that EUR/USD would find initial dynamic resistance near 1.1680/90.  We also noted that the weekly charts would provide the keys to future direction.  With that said, we find no reason to change our prior outlook in the mid-term with a EUR/USD target of 1.1360.  Look for initial dynamic resistance at 1.1585/95 and dynamic support at 1.1540/30.  More recent lows from October 12th at 1.1525 would imply short term stop losses below this area.  Daily closes below 1.1520 should increase selling pressure.

GBP/USD saw another run at the highs from the prior week, but only managed just below 1.3830 before selling off to the lows at 1.3669 and closing at 1.3675.  In referencing our forecast from Sunday 10/24, we pretty much caught this pair to the tee!  We could not manage a close above 1.3833 and saw a daily close below 1.3740 to accelerate downward price action.  For the coming week, we see initial dynamic resistance at 1.3695/05 and dynamic support at 1.3655/45.  Daily closes below 1.3650 suggest a move to 1.3575/65 area.  Any daily closes below 1.3565 suggest a further decline to 1.3350.

USD/CHF closed out the month on the lows near .9155.  While looking on a week to week comparison, the closes were almost identical while more dominant pairs like EUR/USD and GBP/USD were softer.  This all points to cross selling versus the Euro and Sterling.  EUR/CHF continues to make new lows with limited retracement and GBP/CHF is next on the block, with daily closes below 1.2500 and a weekly close below 1.2470 to spark stop loss selling, which will make the Swiss a safe haven and limit the rally’s in USD/CHF.  We see initial dynamic resistance at .9185/95 and dynamic support at .9120/10 area. 

USD/JPY is looking to form a higher low at the 113.25 area.  In order for this to occur, we would need to see a daily close above the 114.10 area first.  For this coming week, look for initial dynamic resistance at 114.40/50 and dynamic support at 113.30/20.

USD/CAD has been trying to confirm a daily bottom it put in place at 1.2290 back on 10/21.  In order for this to occur, it needs to manage a daily close above 1.2390 to then see a quick run up to 1.2530.  Look for initial dynamic resistance at 1.2435/45 and dynamic support at 1.2330/20. 

AUD/USD gave us the weekly close on Friday at .7510 to break the bearish trend in place. This sets the stage for further momentum to the upside projecting to .7705/15 during the month of November.  For this week we see initial dynamic resistance at .7570/80 and dynamic support at .7455/45.

NZD/USD is taking it’s time figuring out where the next 3 big figures is headed.  While weekly and even monthly momentum points upwards, the price action has been delayed with confirming follow through.  The weekly chart has failed to close above .7170 the last two weeks to break that downtrend in place, while the monthly failed as well to close above .7170 to confirm the higher low from August at .6805.  For this coming week we see initial dynamic resistance at .7230/40 and dynamic support at .7095/85.