NEW YORK (Forex News Now) – Here are the intraweek projections for the various support and resistances levels for EUR/USD, USD/GBP and USD/JPY.
In the forex weekly forecast, the EUR/USD pair is shaping up as follows:
The 1.3800 area should serve as major support, as it has been tested several times over the course of the last few weeks. Any break below would be a very bearish turn of events in the pair, possibly leading the pair down to the next support area, 1.3800.
The biggest amount of resistance that this pair is seeing at the time is at the 1.40 area, which is both historically significant, as well as psychologically important. The second level of major resistance is to be found at the 1.4000 – 1.4050 area.
The forex weekly forecast for the GBP/USD pair breaks down as follows:
“Cable” is setup in an interesting “symmetrical” support and resistance pattern, with both areas spacing out evenly at 100 pips “thick”.
Upside resistance is defined at the 1.60 handle, and continues all the way through 1.6100. Any break above the 1.61 handle would signal a larger move to perhaps 1.6700.
Support for the cable is seen at 1.5800, and continues all the way down to 1.5700. A break below could signal a resumption of the long-term bear market in this pair.
And finally, the forex weekly forecast for USD/JPY pair is as follows:
Upside resistance in the pair will be seen at the 81.50 area, and a break above could lead to the 82.50 mark. However, it should be noted that the Bank of Japan could intervene in this pair, and blow right through both of these levels. While the pair is decidedly bearish, at these levels it is dangerous to short this pair as the BoJ has already shown its willingness to get involved.
Downside support is seen at the 80.80 mark, with a break below that signaling the market’s desire to attempt the all-time low of 79.50 in this pair. Of course, somewhere in this area, the BoJ will be very tempted to sell Yen, as the pain threshold of the Japanese economy is reaching a breaking point.