The last days of this week were “golden days” for professional traders. The FOMC meeting made it so easy to predict the price movements. No QE3 was announced, no extraordinary measures were taken, and no rabbits were pulled out of any hats. As a result, all traders ran away from the risks and the US dollar became stronger. From Wednesday evening, you can sell EUR, GBP, AUD, NZD and almost all others currencies against the dollar. Easy correction movement took place at the end of Friday when many traders closed their short orders.
It is difficult to make any prediction because the main currency pairs are at strong resistance levels right now and many important economic data will be released during this week. But if we will look closely to the charts we can have some ideas.
The EUR/USD pair finished the week off at 1.3470.On February, 13 2011; this pair has jumped from this exact price level and reached on May 3d its highest level of the year (1.4940). If EUR/USD breaks 1.3470, it will go down to at least 1.3000, but if there is any good news from Europe, the price can go to the correction trade up to 1.3800 and higher to 1.3900.
The WTI Crude Oil price can help us predict how things will go. On Friday, the price was down at $78.00 per barrel, but came back to $80.50. If we see down trade during the next few days and the oil price will go lower than $78.00, it will be a sign for a strong bearish market and EUR, AUD, NZD will go down also. But if the oil price will go back to $82.00 and higher, I will consider selling the US dollar against these currencies.
