U.S. currency last week reached highs

On Friday most important financial centers ended higher last day of the week, while the dollar gave ground to the top after overcoming pairs during the week areas of support / resistance strength relevant to the various currencies.

On Friday most important financial centers ended higher last day of the week, while the dollar gave ground to the top after overcoming pairs during the week areas of support / resistance strength relevant to the various currencies.

Before the Euro, Swiss Franc and the Pound Sterling, we could see the U.S. currency last week reached highs not played since last May of 2009.

As we start this new week we look at Asian markets closed the session with gains, with the Nikkei showing a rise of 2.74% in response to movements in the previous week’s closing of the markets after the rate rise deducted from the Fed, and the consequent loss of JPY against the American.

China announced that the Regulatory Commission of China Securities Market (CRMV) has approved the launch of futures contracts on stock indexes in Shanghai. They could come into operation from the month of March next.

From the European continent to see major stock markets oscillate without major changes in open areas, after the European Commission has denied the news published in several German media where the Euro Zone could devote an aid package for a sum between 20,000 and 25,000 million.

Pending the opening of the U.S. trading session, we find the major pairs to trade on the day’s closing levels Friday without major movements on a day that relevant reports have not known since the economic calendar.

Euro – Dollar:

On Friday we saw a recovery in European currency, a movement that extended to the weekly close at 1.3590 area after reaching a floor at 1.3435, price level, not played since mid-May last year , and area where we found 61.8% of the upward trend of the last pair from 1.2456 (see Graphic).

Monday we see the pair trading above 1.3600, down from 1.3650 area where peak formed so far.

We found 4 hours watching charts, mild bullish signals today. Overcoming the maximum and first resistance at 1.3655 the pair will take the following levels of congestion at 1.3680, 1.3705, and 1.3735.

The media instead place them in 1.3585, 1.3550, 1.3520, and 1.3480.

Dollar – Franco:

Last week we saw strong movements in the market in general, and this pair in particular. At first we saw a break of the bullish channel that guided the movement, but later after the FOMC announcement on the discount rate, the dollar regained its upward direction bringing the pair to recover the items sold.

At the close of the week bearish movement appreciate a new pair, drawing a new area of consolidation. Today Monday, still early to confirm, we find the pair continued their retreat on Friday, after an attempted triple bullish (see Graphic).

According to the figure, should settle the triple top, we would see an acceleration of the downward movement of the neck line to be overcome in 1.0680. Since the current price at 1.0745, you must first overcome as congestion, 1.0730, 1.0705, then 1.0680 and then 1.0650.

The resistors instead find in the 1.0780, 1.0810, 1.0850, and 1.0880.

Pound – Dollar:

The cable deepened its fall to dollar strength last week with a floor in the 1.5330 area after go 500 pips between high and low and confirming the breakdown of the area concerned 1.5730 tipping.
As seen in weekly charts (see figure), the pair broke out in that area support level of lateralization that marked the movement of the torque from the month of June last year.

Despite seeing a recovery in this new day, the pair having passed that level, leaves open the door to a further decline in the coming weeks.

Going to the analysis of the day Monday, we find the pair in a corrective movement by way of trading on profit taking 1.5490. We expect a continuation of the bullish correction following levels to consider in 1.5530 (38.2% of the retreat of the last rally bassist), then 1.5570, 1.5620, and 1.5680.

The media will be on hand at 1.5430, 1.5360, 1.5300, and 1.5250.

Dollar – Yen:

After a peak in 92.15 shape, this pair momentarily stopped their upward direction receding in recent days on end on Friday with a 91.60 minimum.

Monday we see the pair continue their downward correction listed on the congestion zone of 91.30, which not only traces the observed maximum / minimum past, but where we found the ratio of 23.6% Fibo of the last climb.

The pair shows bearish signals to be confirmed today that the floor area exceeded today in 91.10, then 90.80, 90.55 and 90.30 are the following media.

Where to take direction bullish, the pair must negotiate as resistances 91.60, 91.85, 92.15, 92.40.

Facundo Molina is founder and director of MolFX - Management, a company fully specialized in Foreign Exchange Markets, with an important client portfolio through Capital Markets Services LLC (CMS). He has a BA Business Management at the Universidad Nacional del Sur (Argentina), where he has a doctorate degree based on the application of Fibonacci theory into financial markets. He also acts as professor of new and experiments traders.