The dollar finished the week at the bottom of the pack. Boy, Forex Gump was right on the money for predicting that the dollar rally would stall!
There weren’t any major reports released from the U.S. that left the dollar at the mercy of market sentiment for the most part of the week. Unfortunately for it, we heard lots of positive news for its counterparts which made them resilient on the charts.
For instance, positive PMI figures boosted the euro while the U.K. Q2 2013 GDP report printed twice as much as its previous reading.
I wonder how the dollar will fare in this coming week given that we have a lot of top-tier data scheduled. I bet my Ryan Gosling-autographed shirt that we’ll see a lot of action on USD pairs when the U.S. advanced GDP, ISM manufacturing, and NFP reports are released.
I’m still looking to go long on EUR/USD. On the hourly chart, we see that the pair has been trending higher as evidenced by the higher lows and highs that it has been making. I know I missed the move last week, but I will be patient. I won’t jump in on a long until I see signs that support at the 100 SMA is holding.
Another pair I’m looking at is USD/JPY. For this pair, I have a pretty solid bearish bias, but I still don’t have a good entry point. As such, I’m on waiting for the pair to pullback a decent chunk of its move down before jumping in short.
These are the two pairs I’m currently watching. If any of you got any suggestions or ideas, please do let me know by commenting below!