Major Forex Pair Review- Sideways Crawl Maintained

Euro:
The euro is holding just above the 1.3500 swing point area, and a move below would shift the pair’s outlook to short, and will probably force Eur price revaluations in the mid-term. If Greece remains in the spotlight, the Eur/Usd will probably be heading towards the 1.3280 area in the upcoming week. The volatility smile, which is constructed from the implied volatility in the options market, is favoring the short side of the Eur/Usd.

Cable:
The pound followed the overall mixed sentiment in early Friday trade, and fell 100 pips. With this move, the pair broke below the support trendline that held the pair recently; however, the move was retraced as quickly as it started. The momentum read is moving to Neutral from Long, while the trend read favors short Gbp/Usd positions.

Aussie:
The aussie had its fourth attempt out of the last five days to break decisively above the 0.9350 area, but until now, has failed to hold the move. Switching to a longer-term view, the Aud is expected to reach parity with the Usd, but near-term moves are inhibited by the weakness seen in the European currencies.

Cad:
The cad spent the entire week struggling to break below the 1.0000 area, and every time it pulled the move, the entire market turned around, dragging Usd/Cad higher as well. Similar to the Aud, the Cad is expected to continue to march against the Usd, but short-term moves are highly dependent on the market’s overall risk tolerance.

Swissy:
Broad dollar strength saw the Usd/Chf bounce from the 1.0500 area over the last two days of trading. The 1.0500 area has been the main swing point of the last six months of trading, and this bounce only confirms the pair’s upside potential.

Yen:
After six days in which the Usd/Jpy developed only indecision patterns on the daily chart, the pair seems to have found the strength to move decisively in one direction; lower. This renewed episode of Jpy strength comes on a high level of aversion to risk, due to the Greek debt saga. The pair’s downtrend is expected to find temporarily support in the 92.00 area, where the pair spiked in the late October and February.

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