Technical analysis on the majors (June 5th 2011)

Please find hereafter our daily update on the majors as of June 5th 2011.

(Click on the dedicated link to access our forum post with the chart).

 

  • EUR/USD
    After a confirmed break above previous high at 1,4350 we did see the major pushing higher to finally close the week above 1,46. Next target is given by the weekly upper bollinger band at 1,48 near recent high (see chart attached).
    The EUR/USD might meet a first barrier at 1,47 corresponding to the projection of the double bottom formation.
    We will maintain a bullish outlook as long as 1,4350 remains support.

    Link to ATF Forum post : http://bit.ly/jd2XjK

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  • GBP/USD
    The Cable had been retracing 50% of last week’s rally until friday. The pair managed to bounce on top of the important 1,63 support to trade back above 1,64 at the end of the week (see chart attached).
    We keep holding a bullish prospect with a next target at 1,65. A break above this level would expose 1,67 corresponding to the April’s high and projection of Fibonacci.
    Only a break back below 1,63 would negate the bullish structure.

    Link to ATF Forum post : http://bit.ly/lTcfhS

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  • USD/JPY
    Last week, the pair failed to break through 82,00 and started to roll-over. Then we did see a confirmation of the weakness on the pair with an acceleration towards the 80,00 level on friday.
    A break below this important support would expose the previous low at 79,50 and probably further down.
    It is worth noting that the USD/JPY will reflect the US Dollar behavior. In other words, if the US Dollar confirms its weakness next week, we might see the USD/JPY collapsing.

    Link to ATF Forum post : http://bit.ly/kXngDT

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  • USD/CHF
    The USD/CHF continues to make new record lows.Tthe new historical low is now printing at 0,8335 and the pair was trading near this low at the end of the week.
    It has been a long time we haven’t mentioned any target to the downside.
    Looking at the daily chart (attached), the pressure to the downside remains intense and we do not see any sign of reversal. We continue to encourage a bearish prospect until proven otherwise.

    Link to ATF Forum post : http://bit.ly/mpA9TB

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  • USD/CAD
    After a sharp 38% retracement of the previous bounce, the pair has resumed its move to the upside with another attempt to break though the strong barrier at 0,98 but it failed to confirm above this level once again on friday after the dismal US employment datas.
    The bounce is not yet in question but if we do see the US Dollar weakening again, the USD/CAD might resume its downtrend particularly if the rising channel is broken (below 0,97) as you can see on the daily chart attached.
    We would like to bring to your attention the fact that this pair remains choppy and difficult to trade. We recommand to trade it only with short term targets.
    We still think that the USD/CAD might reach parity over the coming sessions or weeks.

    Link to ATF Forum post : http://bit.ly/ioQBWN

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  • AUD/USD
    The AUD/USD has been trading sideways all week in a narrow range between 1,0580 and 1,0760. We are now bit confused with the commodity bloc as a whole considering the potential shift towards risk aversion on the financial markets. Indeed, the incertainty about the worldwide economic recovery is playing against the high yield currencies. On the other hand, we might see the pair taking advantage of a weaken US Dollar for a possible resumption of the uptrend.
    In any case, we keep holding a bullish outlook on the pair until proven otherwise. Next target is given by the historical high at 1,10 if the market can establish above 1,0760.

    Link to ATF Forum post : http://bit.ly/ml0Rqo

Notice : the technical analysis are given for information purpose only. There is no entry timing so you will have to build your own strategy based on these recommendations.
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