Last week’s Forex market saw a sharp rise in the U.S. Dollar rate and a substantial decline in the New Zealand Dollar prices.
Strong U.S. jobs data published last week was the main driver for the U.S. Dollar’s growth and pushed the stock market to new all-time highs, especially the indices.
The British pound had a tough week, falling towards the 1.25 mark during the Friday’s session. At this, moment, it seems quite obvious where the price would go next, bearing in mind that level 1.25 is a significant barrier. If the price stays above this level, we’ll be expecting a bounce towards the 1.27 mark. However, if the price breaks below this level on a daily close, the market would probably lose a couple of hundred points.
The USDCAD tested level 1.30 as support last week. If the price manages to break below this level, the market is likely to slide towards the 1.2850 mark. A breakout below this level opens up a possibility to even bigger decline. On the other hand, if the price breaks above the bar top this week, it’ll have all chances to ascend further up, to 1.33 mark.
The U.S. economy keeps demonstrating positive figures, which means that the Federal Reserve could hold off its rate cut, scheduled in the fall. The Eurozone keeps struggling, which is indicated by weak manufacturing activity in the region.
The Euro fell pretty sharp last week, breaking down towards the 1.12 barrier on Friday as the jobs data came in weaker than expected. This long candle is quite interesting, but its shows that there are many support levels on the way. The 1.11 mark is a significant support as well, so some kind of bouncing from here is quite a possibility despite the fact that technical indicators demonstrate a rather bearish potential.
To sum up, here are our targets for:
GBPUSD – buy up to 1.27
USDCAD – sell up to 1.285
EURUSD – set a buy limit at 1.11