EUR/USD Forex Weekly Overview (July 3-7)
The most traded currency pair EUR/USD has rallied significantly during the previous week, and the rally has opened up the door for more upside to be seen after first a retracement that can be seen as another buying opportunity.
Two momentum indicators, the RSI and the MACD are already in oversold territory which be the first sign that a resumption of the rally can happen anytime. The first level of support only comes at 1.1290 which is a strong and historical level that can stop the downside. On the upside, the key resistance level remains last week high 1.1445.
The GBP/USD technical pattern remains bullish after last week rally, but only a break and a close above last week high 1.3031 can resurrect the current bullish momentum. However, the key level remains the big psychological number 1.3000.
On the downside, we have the first significant level of support at 1.2800 but only a break and a daily close will trigger more downside pressure. The technical indicators, RSI and the MACD are already in the area from where a bounce can be produced.
The USD/CHF is in the process of reversal after last week stopped at the big round number 0.9500. The inability to break below this major support level and the subsequent rally can indicate a bottom is in place.
The technical indicators, RSI and the MACD both show strong bullish momentum readings which can help the USD/CHF exchange rate reach 0.9700 the next significant resistance level. On the downside the last week low 0.9550 remains key support level.
The USD/CAD exchange rate has experienced tremendous losses during the previous week of trading. As long as USD/CAD trades above the big round number 1.3000 there is a real potential of a reversal and possibly a retest of 1.3166 next level of intraday resistance.
The MACD indicator moving averages have broken above the zero line which is a good sign for the bullish case. Only a daily close below last week low 1.2946 can mean a resumption of the bearish trend.
The Gold price has dropped to 8-week low during the first trading day of the new month of trading. Now the focus is back for a retest of the $1200 support level, which is also a significant swing low level. A break below May’s low $1220 can open the door for a retest of $1200 but not before we get a pullback as the RSI and MACD indicator are in oversold territory.