EUR/USD was uneventful last week as a standalone pair.  The range was contained within one big figure and as expected from last week’s forecast, the stops were cleared out below 1.1525.  While Euro based cross pairs confirmed their direction with conviction, EUR/USD could not decide how it wants to proceed from these levels.  We will be watching EUR/USD to break free from it’s cross dependency and make a more convincing move.  While initial dynamic resistance appears at 1.1570/80, there is another stretch possible to 1.1600.  Initial dynamic support appears at 1.1565/55 and then again at 1.1510/00.  Our bias has been and remains that EURUSD should weaken to 1.1360 in the coming weeks.

GBP/USD saw great volatility to the downside with Sterling weakening across the board versus all pairs.  The Pound confirmed a lower weekly high with Friday’s close at 1.3495.  Our projection is that GBP/USD will continue to weaken towards 1.3100 in the near term.  Initial dynamic resistance appears at 1.3575/85 and dynamic support at 1.3415/05 and then again near 1.3340/30.  Daily closes below 1.3400 should accelerate the existing liquidation of Sterling.

USD/CHF last week also traded uneventful as a standalone pair.  The range also contained within one big figure.  This pair saw limited upside before correcting and closing lower on the week.  As we referenced in last week’s forecast, the swiss franc would continue to be bought versus the Euro and even more so versus the Sterling.  We mentioned how GBP/CHF had the potential for much lower price action and that it would limit rally’s in USD/CHF.  This came to fruition as expected.  This week we see initial dynamic resistance at .9185/95 and dynamic support at .9070/60.

USD/JPY last week traded within both of our projected dynamic resistance and support areas.  In the forecast, we referenced that dynamic resistance would appear at 114.40/50 area and the high occurred near 114.44, while projecting dynamic support at 113.30/20 and the low coming in at 113.30.  We were also unable to confirm the higher low as we failed to get a daily close above 114.10 on four attempts.  For this week, we see initial dynamic resistance at 113.80/90 and dynamic support at 112.90/80. 

USD/CAD was able to confirm a short term bottom with daily close last week above 1.2390.  While our expectation from last week was that we would get a quick run up to 1.2530, we only managed as high near 1.2480.  In the coming week we see initial dynamic support at 1.2420/10 and dynamic resistance at 1.2515/25.

AUD/USD last week could not follow through higher and after the RBA announcement, saw a sell off erasing the prior two weeks gains closing the week near .7395.  From a trend perspective, nothing has changed and both the daily and weekly trends are still in upwards direction.  We do not see this changing soon, but view as cheaper entry levels for another run higher.  Initial dynamic support appears at .7370/60 and dynamic resistance at .7415/25.

NZD/USD is still deciding which trajectory it wants to take.  Our trend forecast from last week is unchanged as we watch this pair further.  Look for initial dynamic resistance at .7135/45 and dynamic support at .7040/30.