EUR/USD

The pair can be supported above 1.203 in the coming sessions. A break of this support should lead to a new test to 1.965. We recommend buying at this level with stop loss at 1.2020 targeting 1.23. The pair can face a resistance is at 1.213. Breaking 1.2020 can increase the pair momentum. So try to care of your stop loss and sell with 1.2020 breaking. The drawdown can be limited above 1.216 which is the trend line support. The pair has found a support over 1.23 recently and it has not slided down from this level and it is still trying to cross 1.24 again to 1.25 to gain much more momentum. We recommend buying stop loss at 1.215 targeting 1.271. Fundamentally, it is better to wait for the US inflation data later this week. It is expected to show a mild price forces in US.

USD/CHF

The pair USD has started the week negatively impacted by weaker than expected non-farm payroll and threatening of terrorist attacks before the presidential election next November. This has put pressure in the pair to test its five months low at 1.22. The market is to focus on the coming inflation data from US this week as the key derive of the rate outlook in US. These data are important and can change the market sentiment please, try to wait for it.

GBP/USD

GBP/USD could reach 1.866 on the same negative sentiment and the encouraging labor data in UK but it has came down on the recent UK intelligence impact on Blair and his legion. The market is still expecting new rate hike in UK especially on the high housing prices in UK. The market is to focus on the recent MPC voting on keeping rate unchanged in its recent meeting next week.

USD/JPY

The yen rose against the dollar on reports that two of Japan`s four mega banks, Mitsubishi Tokyo Financial Group and UFJ Holdings may merger to create the world`s largest banking group. But the Intel`s earnings have a negative impact on the Japanese tech stocks, hurting the yen`s gain. BOJ has chosen to keep its rate at its loosing stance but its assessment has shown that there is solid pace of recovery in Japan.

Best Wishes




FX consultant
Walid Salah El din
http://www.fx-recommends.com
Cairo, Egypt.