EUR/USD
The EUR/USD pair broke higher during the session on Monday, slamming into the 1.37 handle. This is an area that's been significant resistance previously, so it makes sense that the market stopped right there. However, the fact that we are closing out the top of the range suggests that the market is going to make a significant attempt to break out to the upside. However, we do not feel comfortable buying into we get above the 1.3750 level, as it would be a clearance of the potential "zone" above. On the other hand, if we pullback to there could be enough buying pressure below in order to make buying supportive candles possible.
USD/JPY
The USD/JPY pair fell during the session on Monday, dipping below the 101.50 level. The area below is rather supportive level, so we don't necessarily anticipate selling this market anytime soon. Because of this, we feel that the market should continue to find buyers below, especially as we get close to the 101 level. Because of this, we feel that the market should start to find buyers relatively soon, but we do not have the proper buying signal in order to go along, so we are on the sidelines at this moment in time.
GBP/USD
The GBP/USD pair initially fell towards the 1.70 handle during the session on Monday, but as you can see absolutely exploded to the upside and broke out. The break out during the session on Monday cleared a massive resistance area from the monthly chart, and as a result the market should continue to go much higher now, probably to the 1.75 level if the longer-term charts are to be believed. The British economy is starting to pull out of recession anyway, so makes quite a bit of sense to go long at this point in time as the US GDP revision numbers were absolutely horrible last week
AUD/USD
The AUD/USD pair initially fell, but found enough support below at the 0.94 level to turn things back around and form a big hammer. The hammer should in fact show that there is plenty of support below, but we recognize that the 0.9450 level is resistive, and we believe that the 0.95 level above should be the top of the resistance. In other words, it's a very thick "zone", and with that be very hesitant to buy this market until we are above the 0.95 handle, but recognize it as a nice buying opportunity when it does in fact happen.
Currency Data for 01 july