AUD/USD
The AUD/USD pair fell significantly during the course of the week, breaking below the significant uptrend line that had been supporting this market for so long. Because of this, I believe that any type of rally in this market is probably going to be a selling opportunity. I expect the Australian dollar to continue going lower.
EUR/USD
The EUR/USD pair initially fell during the course of the week, but found enough support below the 1.08 level to turn things back around and form a bit of a hammer. The hammer of course suggests that we are going to see bullish pressure, but I think it will be short-lived in the sense that we do not have a clear break out to the upside quite yet. I am a buyer of short-term pullbacks, but I think that the range we trade in this week will be fairly small, at least until we can get above the 1.1050 handle.
GBP/USD
The GBP/USD pair initially tried to rally during the course of the week, but we turned back around significantly to fall into the 1.45 handle. That area is significantly supportive, so a bounce from here would not be a huge surprise. However, I believe that the best way to trade this market is to simply start shorting resistive candles after short-term rallies. On the other hand, if we break down below the bottom of the range of the week, but extensively the 1.45 handle, that would be reason enough to sell as well.
CAD/JPY
The Canadian dollar continues to absolutely meltdown against the Japanese yen as oil markets fall apart. With this, it is very likely that any rally will be sold off drastically as the market for oil increasingly looks soft. With this, I am a seller of rallies and of course breakdowns below the bottom of the range.
