The US$ came back rather quite strongly last week and specially the Friday’s selling off on Wall Str was bit confusing for the Bulls, however I’m still convinced that it was a short term correction mainly caused by the Profit Taking by Investors. GBPUSD was the clear loser last week along with Aussie and Kiwi Dollar.
A quick look at the USDLFX (Combined value of US$ against the majors) will tell you that there are Resistance Zones coming up rather soon and if they trigger a Reversal for USD towards south, we may see EURUSD (and other USD Pairs) to gain against US$ and possibly another short term Rally in Markets worldwide.
However, what is also interesting to note is that the SP500 chart is still showing some losses to come, I would suggest caution and look for confirm signals before moving in either direction.
Here are the Support Resistance Levels for EURUSD next week:
Support: 1.4800, 1.4771, 1.4709, 1.4650
Resistance: 1.4923, 1.4960, 1.5015, 1.5137
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SP500 has ben the key and support has been closed UNDER but can it hold? we will soon find out
[...] This post was mentioned on Twitter by Forex Candlesticks, Ichimoku Analysis. Ichimoku Analysis said: Weekly Ichimoku Analysis for USD between 23rd and 27th Nov 2009 http://www.ichi360.com/?p=1285 [...]
[...] As discussed earlier, I’ve had a Bullish Bias for EURUSD for this week, I’ve now covered all my Long Positions at 1.5137 (the position I explained as the highest level of Resistance earlier in my weekend analysis). [...]
[...] 1.4953, 1.5014, 1.5136, 15197, 1.5258 1.5136 seems to be a psychological barrier, if you remember this was the level we identified earlier a couple of weeks back and we saw a Temporary Top forming at this level [...]