In the early hours of the European trading session, EURUSD was a bit weak on the opening but price was holding at 1.09307 which is a good support that pushed prices back now testing 1.10 which is last week’s high. Euro seems to have gained some strength since the disappointing ECB conference some weeks ago. Going into the FOMC week, we might see a strong euro especially EURUSD might remain bullish as long as we trade above 1.0930.
USDCHF remains bearish because of the strength of EURUSD. Traders seem to be a bit bullish on Swiss going into the FOMC. We might see more downside on USDCHF if EURUSD continues to drop
GBPUSD has resumed the bearish trend on the back of weaker sterling as a result of dovish comment from BOE last week. Cable rallied on Friday but it seems to be out of steam and prices might drop back to below 1.50.
USDJJPY remains weak as trader seems to be demanding for Japanese yen and indices continues to sell off across the board. The major support to watch on USDJPY is the 120.00.
USDCAD remains bullish as oil price continues to slide. Oil has dropped for 8 consecutive trading days and it is currently trading at the lowest price since 2009 at $34.77. If this continues, USDCAD might trade as high as 1.40 by the end of the week.
Gold remain bearish has prices rallied to $1079 on Friday which is a good resistance holding and prices has pulled back in the early hours of trading. More downside is expected and prices might drop back to test previous yearly low at $1045.