By TraderVox.com
Tradervox.com (Dublin) – The US dollar advanced last week, making gains against both commodity-related currencies and safe haven currencies. The lack of promising solution to the eurozone crisis and the strong economic data from the US made the dollar more appealing to investors. As the month closes this week, here is a brief analysis of major currencies performances last week and the expected trend this week.
EUR/USD: the pair slid in range last week, losing the 1.30 line in the process. The lack of progress in Euro zone and Germany’s opposition to Greece restructuring proposal has exacerbated the situation in Europe. The euro-dollar pair started the week with a move up, but failed to break the resistance line at 1.3075. The pair then dropped to below 1.30 line and went further below the 1.29 line. With Draghi expected to speak this week and the German Retail sales expected at the start of November, there is a high chance the that euro will appreciate marginally against the dollar. However, the weekly outlook remains neutral and slightly bullish for the pair.
GBP/USD: the pair enjoyed a good week last week, climbing by almost one cent at the close of the week. The pair started the week at 1.5997 and dropped to touch a low of 1.5913 as the support line at 1.5930 weakened. The pair then made a strong break above the 1.61 level to touch a high of 1.6141 before retreating to close the week at 1.6091. The manufacturing and Construction PMIs are the major reports this week and the pair is expected to trade within range this week.
USD/JPY: improvements in the US resulted to the pair moving upwards during the week. The pair started the week with a slow climb to the resistance line at 80. With critical support at 79.70, the pair moved up above the 80 line to touch a high of 80.37 before sliding to close the week at 79.64. The outlook for the pair this week remains bullish and we might see the pair move above the 80 line again.
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