Major Pairs In Review- USD Squeeze

Euro:
The Asian session saw the Eur/Usd gaining 50 pips, almost as much as it moved during the prior day of trading. The uptrend came in reaction to positive equity and commodity markets, and is very likely to continue into the European trading hours. The pair’s next target is in the 1.3800 area. However, a failure to push higher could send the pair back to the 1.3500 zone.

Cable:
The U.K. economy has produced relatively strong macroeconomic numbers lately, and this lifts the expectations for an upside break. It looks as though the 1.5700 area will be reached over the coming weeks, if global investors look to buy risk. The pound had a range of only 120 pips this week, which is small, compared to the pair’s historical ATR.

Aussie:
The last few trading sessions saw the Aud/Usd testing the 0.9200 area, but there were not enough sellers to push the pair lower. The pair is looking very bullish, especially after it broke above a resistance trend-line in recent trade that had been holding since November 09. Over the longer term the pair will reach parity with the Usd if equities and commodities build on YTD gains.

Cad:
The pair is trading below the 1.0000 area, after it showing some hesitation over the last few days of trading. From here, the pair is expected to move even lower, however, the pair’s small trading volumes could represent a problem in regard to easily breaking strong support areas. The daily trend and momentum read are both pointing Short, supporting the current downtrend.

Swissy:
The Usd/Chf is trading in the 1.0500 area, the same place where it found support over the last two months of trading. A push below this area will be a major break-out for the Swissy, but the other majors will have to support this move as well. In addition, just below the 1.0500 area, the pair will run straight into the 200-day moving average.

Yen:
The yen has developed a unique pattern of trading over the last few months: it first breaks an important price point, and then it spends the next few days or even weeks moving side-ways. Apparently, the same is happening right now; after the pair gained 400 pips in a short period, the yen spent the last few days moving nowhere, in an 60-pip range.