Forex Week - May 24, 2010 till May 28, 2010

EUR / USD

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EUR / USD at the beginning of last week pressed down, and even had time to drop below 1.22. But the pair managed to recover and finally closed at 1.256. Trends this week will still bearish and there was major support at 1.233 level. If penetrated, then the 1.22 and 1.214 will be returned to the target. In contrast, there was resistance at 1.267. If impregnable, EUR / USD is expected to continue to rebound to 1.288 or even back to 1.3's.

GBP / USD

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Like the EUR / USD, GBP / USD also briefly depressed to 1.423 last week. Pair finally managed to rebound and closed at 1.445 on the weekend trade. At the beginning of this week, the pairs are expected to move between 1.44 to 1.45. If through 1.45 then the recovery expected to continue to a level of 1.478 to 1.5. Conversely, if through 1.44, then GBP / USD fell to a 1.423 chance again. European problems are still a hot topic, and will certainly impact on the GBP. If it continues to fall, the GBP / USD has the potential to fall below 1.4. There is strong support at 1.38 which memjadi lowest point in 2009.

AUD / USD

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Pairs started last week with support through 0.88. Furthermore, the pair fell sharply to a range of remarkable .807 and finally closed at around 0.83. This week, the pair are expected to be between 0.824 to 0.848. Pair still more likely to fall, the pressure is still large for a pair is under .857. If the downward movement continues, it will again be a target of 0.807, the next level of 0.77 which is the lowest point in 2008 when the crisis occurred, it will act as support. On the upper side, .857 will be the main target, if pierced, AUD / USD has the potential to do a correction to 0.88 or 0.9 again.

USD / CAD

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Last week the USD / CAD sped up to a level of 1.078 and finally closed at 1.059 level. Canadian fundamentals are still strong, only the European problems kept investors panicked and this affects the movement of the USD / CAD. Pair likely to fall below 1.055 and a move towards 1.04. If penetrated, then 1.03 and 1.02 will return as the target. Conversely, if it moves up like last week, it will return the focus of 1.078, with 1.085 and 1.113 as the next target.

Written by surabayaforex.com