EUR/USD broke through the support at 1.09700 last week, making it the 3rd week down in a row and making a new lower low swing after its latest swing down in July. This lower low confirms that EUR/USD is in a downtrend. Trading below its EMA’s and MACD below its centreline confirm that the bears are in control. EURUSD is heading towards 1.08300
GBP/USD showed a plus this week, but couldn’t break through the 23.6 Fibonacci resistance level. After trying to break above the Fib. Level, the cable went down and stopped at support at 1.217800. MACD declined (on the weekly chart) despite GBP/USD rise of 0.41%. GBP/USD is looking for some breath and will probably trade in range before it continues its downwards momentum.
USD/JPY hit resistance at 104.400 last week and declined as expected. As bullish momentum fades away of the ninja, the bears will look for opportunities to get back to support at 100.000. USDJPY will need fundamentals to break out of either one of the two sides.
After the rejection at 1.33000 the loonie stopped its uptrend and declined all the way to 1.30000. It found support there and the bulls took over control again, moving all the way back to 1.33000 again and break through it. 1.33000 now serves as support. Last week made clear that bulls are still the strongest, although USDCAD is grinding upwards at a very slow pace. There is too much support in the downside to ignite a downtrend.
As discussed last week, the kiwi failed to break through 0.70300 and traded upwards this week. The heads and shoulders pattern (formed on the daily chart) is done and its bearish effects are over. Signals still point to further gains, next big resistance is at 0.75165, the 50.0 Fibonacci level from last downtrend.
The DAX broke through its symmetrical triangle on the upside this week and traded up for the past four days. There is some resistance at 10.800,00, but rising MACD and the EMA’s hint for further gains and a breakout to the upside.
For the fifth week, WTI traded up. It tried to break through 51.75 resistance again, just like last week but rejected. WTI will need even more bull power to break above it. Support is at 50.0. However, although it traded up, MACD is still declining and that signals bullish weakness.
Timothy Van der vlugt Forex Analitics © BJF Trading Group inc.