This is the fourth week in the row that the EUR/USD pair is traded down. The euro lost to the dollar 1.33% closing at USD 1.3677.
After breaking the 50% Fibonacci support of USD 1.4010 last week, the pair keeps following the bearish trend. This week the pair created a new low by breaking another important support – a 61.8% Fibonacci support at USD 1.3745. The pair’s inability to break through the 1.3745 line supports the bearish trend. On the other hand, rising above this line will end the falling correction. It should be noted that RSI and MACD are currently oversold and this suggests the possibility that the pair might move up.

USD/CAD

 

The pair has been showing a clear bearish trend from March till October 2009 falling from CAD 1.30 to 1.02. The daily chart shows that USD/CAD has stopped at 1.02-1.03 area which used to be its resistance line. The pair created a double bottom pattern in this area accompanied by a bullish deviation of the oscillators. This move allowed the traders to execute a convenient long trade with the stop loss order being below the resistance area.
This week the pair has moved slightly up closing at CAD 1.0715 with last week’s working assumptions unchanged:
• Stopping above the 1.07 line will strengthen the long position and might execute the W pattern.
• Inability to break through the 1.07 line will signal to leave the long position.
• Breaking the 1.02-1.03 support will give a forex signal to the short position.

EUR/JPY

 

The pair has been moving down since July 2008 (JPY 170) till the end of that year (JPY 113) creating a double bottom pattern. Since March 2009 the pair has been moving inside the 126.80-138.50 range.
Last the pair broke the JPY 126.80 line thus giving a short signal. This week EUR/JPY has still followed the bearish trend closing at JPY 122.06 when the euro lost 2.45% to the yen. If the bearish trend continues, the pair might slide to the February 2009 low at JPY 113.

USD/JPY

 

The pair has been showing a clear bearish trend since June 2007 (JPY 124) and moving while creating declining peaks. In January 2009, the pair created the double bottom pattern in the JPY 87 area and started the correction move. USD/JPY climbed up to the Fibonacci retracement 38.2% at JPY 101.5. The pair failed to break this resistance and resumed the sliding path creating declining highs and lows.
After failing to escape the downtrend for the fifth week in the row, the pair has closed this trading week at JPY 89.22. Basing on our previous overviews if the bearish trend remains unbroken lies low at JPY 87. We need to wait and see if the pair will hold on to this crucial support or if it’ll break it too.

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