In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from Jun 10 to Jun 16.
In a week full of positive news on the Greenback and no considerable affection on the EUR, it was unexpected to witness the EUR/USD exchange rate having such a large rise. The resistance zone at 1.17108 was penetrated beautifully from the opening of the week, and the powerful bullish momentum only slowed down a bit on Friday when the exchange rate closed at 1.17658. In the current condition, as the momentum is heading up strongly, the next resistance level at 1.19980 (14 May peak) will much likely be tested next week, while a contingent correction may bring the resistance area at 1.15045 back to consideration.
The British Pound – Greenback continued the modest recovery momentum last week with a considerable fall on Monday before a significant rise showed up and end the week with slight changes in the exchange rate. The GBP/USD ended the week at 1.34050 in the current fluctuating situation. At present, a strong rally coming from positive news on the GBP (which may likely come from the G7 Meetings in Quebec) might bring the exchange rate to the resistance level at 1.36329 (03 May Peak). On the other hand, the exchange rate may return to the bearish momentum with the support zone at 1.31971 brought back into consideration.
A swing high was made this week when the rate chart witnessed the USD/JPY rising gently from Monday. Two followed continuous falls on Thursday and Friday pulled the exchange rate back to 109.511, which was even lower than the Monday’s closing rate. Traders are again recommended to have more market observation before making any investment decision. Given such a condition, the support area at 108.562 will much likely be test next week, while a change in JPY’s increasing value against the USD may make the exchange rate heading back to the peak at 110.256 on Wednesday.
After the fall on Monday, the Greenback – Loonie exchange rate returned with three continuous rises, especially on Tuesday with a huge fluctuation amplitude, before a considerable fall closed the week on Friday at 1.29195. From here, a strong rally will open the door for a further advance towards the 19 Mar peak at 1.31225. Alternatively, a fall back below the EMA 20 with a strong bearish bias will put the support hurdle at 1.28094 back onto the radar.
The Australian Dollar – US Dollar continued with the indicator of a bullish tendency on Monday, before the continuous falls on the last two days pulling back the exchange rate to 0.75944. Despite of that downward tendency, we remain neutral on AUD/USD as the rate fluctuated strongly throughout the week. The next substantial support balk is ascertained at 0.74654, which is likely to halt bearish momentum. Alternatively, the support-turned-resistance 0.76740 may come in play should a correction appear sooner than expected.
Given similar happenings throughout the week to the AUD/USD, the exchange rate of the Kiwi Dollar toward the Greenback made a swing high-shape chart before ending at 0.70259. The next support balk is defined around 0.68466. Alternatively, a rally will likely to bring the resistance level at 0.70585 (Wednesday’s peak) back into consideration.