#forexbreakfast forex focus
The week has been sideways on the currency markets. Despite a return of risk-on appetite, caution has prevailed in the currency market with the appreciation of the safe-haven currencies (yen, Swiss franc) and the US dollar.
Badly the pound which depreciated against both the euro and the dollar, the operators likely deemed insufficient the measures put in place by the English central bank against the crisis.
A negative week for the currency sector of emerging countries, with Latin American currencies in the lead. Only the Colombian peso, which followed other oil currencies such as the ruble, the Norwegian krone and the Canadian dollar, was positive.
Net bullish euro/dollar positions continue to rise, having risen to two-year highs.
EUR / USD
After touching the 1.1350 area, the exchange rate fell towards the levels of the beginning of June, in the 1.12 area. Crucial for this failure were the good US economic results, which were above expectations and the uncertainty in the European Union countries linked to the recovery plan.
On the downside, the first support to be monitored is in the 1.1150 area. Exceeding this level could lead to a change in zone 1.0991. While on the upside the first resistance to be monitored is in the 1.1429 area and the 1.1448 area.
EUR / GBP
Positive week for the currency pair that finally surpassed 0.90, pointing to 0.9148.
On the upside, the resistance to be monitored is that located in the 0.9148 area and subsequently that at 0.9325. On the downside, the support to be monitored is in the 0.8925 area and subsequently the one placed in the 0.8711 area.
EUR / JPY
A positive week for the Japanese currency, the exchange rate went below 120 for the first time since the beginning of June. The exchange rate is retesting the bearish trendline broken in early June. A return of the exchange rate below this line could mean that the break-in early June was invalid.