Forex Weekly Review (Last Week)

Last week’s biggest mover was the Euro, together with the Swiss Franc, after the ECB hinted at a June easing. Weakness in the Euro also dragged down the Sterling, which originally extended the recent uptrend to the highest level since 2009.

The Japanese yen was generally firmer but was overshadowed by some commodity currencies as stock indices pushed back toward historical highs.

Commodity currencies were mixed. The Australian dollar was boosted by solid employment data and was the strongest currency last week. However, the Canadian dollar pared back much of the week’s gain following some disappointing jobs data. The development last week left the market with a question of how weak the Euro is.

The EUR/USD took out 1.3769 of support last week, which comes as the first sign of a trend reversal. Also notable is the bearish divergence in the daily MACD, which also strongly suggests a trend reversal.

This coming week should be crucial to the EUR/USD pair since it will have a test on the channel support, which stands at 1.3728. A decisive break from there will indicate that the up trend from 1.2755 has completed and will confirm the bearish outlook for 1.3476 support. A rebound from the current level will keep the EUR/USD pair inside the channel and maintain the uptrend.

P.S.: This analysis has been made according to the data provided by stocksoptionsandforex.com, a well known Forex trading signal.