Weekly Outlook: 2014, December 21 - 28

The USD/CAD pair tried to break higher during the course of the week, but as you can see struggled once we get above the 1.16 level. The resulting candle is a shooting star, and as a result we would not be surprise at all to see some type of pullback. With that being the case, we feel that that pullback should represent value in the US dollar, and have buyers stepping back into this marketplace given enough time. We think that a little bit of profit taking may happen in the short-term, but ultimately the long-term uptrend should continue



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The NZD/USD pair went back and forth during the course of the week, but ultimately finished fairly flat. With that being the case, we feel that the market will continue to bang around in this general vicinity and with this week being Christmas, we don’t really anticipate much in the way of large moves. However, we recognize that any rally in this market should be a selling opportunity and should continue to be so. We think that the market will ultimately go down to the 0.75 handle, which is the next large round number.



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The GBP/USD pair fell during the bulk of the week, but bounce slightly in order to form something along the lines of a hammer. At the end of the day, and looks as if we are trying to find support near the 1.55 level. With that, we think that eventually this market bounces significantly, and then heads to the 1.60 handle. We have no interest in selling this market at least until we get below the 1.55 handle, which we do not anticipate to see happening this week.



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The EUR/USD pair tried to break above the 1.25 level during the week, but then turned back around to break down towards the 1.22 handle. Because of this, we feel that the longer-term downtrend is going to continue and that rallies will continue to be selling opportunities. However, this is Christmas weeks ago expect a lot in the way of movement has more than likely the market will be fairly stagnant. With that being the case though, we have no interest in buying this market and think that eventually it should continue to fall.



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