The most important even of the week is the deployment of dollar compared to euro currency. Namely euro currency (euro as well as pound sterling), since other currencies grew compared to dollar during the week. Thus, leading economies continue losing their positions on the market, while raw materials market and developing markets grow.
The development of EURUSD was very smooth. On Wednesday the pair couldn’t reach and pass the resistance level of 1.3140 and it moved downwards. (Now we are not talking about fundamental reasons of this movement, which was provoked by changes in the forecast of development of Eurozone by the central bank). A good fall on Thursday ended with finding local bottom on Friday, and the correction from it was made to current fall on Friday.
Since there aren’t any signals for deployment (and even for Н4), the descending trend is still the current trend for sales. Its potential for fall is reaching 1.2825, where the lower bound of trading diapason, that was actual in September-October, is. The signal for entering into sales (for those who are not in the market right now) will be a gap down at the opening.
Pound sterling, according to subjective sensation, just followed its continental comrade- euro. It is the sequence of actions of the pair that defined certain delay on the trading day the beginning of the descending trend, and on Friday the pair GBPUSD found pivot faster.
According to the picture of today, it is not worth selling the pair just yet before the opening of the market, and at the exit of the pair higher than 1.6050 it can be bought without worries, since it will be a signal for continuing the ascending trend.
USDJPY pair has been in a wide diapason of consolidation for several days, but on Friday it made another attempt to exit it. Meanwhile the investors are not ready to determine the direction of movement of this pair. There is a possibility that a graphic figure of “flag” may appear on the daily graph of USDJPY, which will be a signal for continuing the trend, meanwhile the pair is in consolidation, and the traders should wait for the signal.
There is a gradual ascending trend on Australian dollar, so everything is clear here.
Gold found support last week, not reaching the support level of 1677. Most likely great purchases with prices lower than the important and strong level of 1700 dollars for troy ounce gave the support. This fact may be proved by three long lower shadows of daily candles on Wednesday, Thursday and Friday. As a result bulls’ positions become dominant over bears’ positions and the next week the gold will have to continue the renewal. The first resistance on the way of gold renewal will be a resistance of 1740.
We wish you a god and profitable week!
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