Weekly Overview on Majors' Price Action

EURUSD - 2 Days beforethe Federal Reserve Meeting

Last week the fiber’sprice action gave some pretty clear signals of what the price might do. Asexpected EURUSD jumped from 1.0800 all the way above 1.1000. It did not hit thenext resistance from 1.1050 and in the second part of the week it has beentrading in an 100 pips range between 1.0930 and 1.1030.

I am expecting for thisbeginning of the week for the bears to try once more to break above 1.1054.They have the biggest chance before Wednesday, when the Federal Reserve isexpected to announce a new rate hike. If so, the price could plunge back to1.0800 or even 1.0700. If the Fed will not deliver what they are expected to,then we might witness another move of 400 pips up.

USDJPY - CorrectiveMovement

Last week I emphasizedthe one month range in which the USDJPY was trading. My expectations were forthe price to break above the upper limit. It did the opposite, triggering thealternative scenario. After the confirmed break below 122.24, the price droppedbelow 121.00, hitting a low at 120.60.

Currently is trading around121.30. The down move looks like a Falling Wedge. Combining the price patternwith the positive divergence from the 14 periods RSI, will give us a prettystrong bullish signal. I would still wait for a proper break above 122.24before considering trusting the bulls. On the other hand I would consider abreak below 120.00, to be a strong bearish signal.

NZDUSD - Still tradingup

The price of kiwidropped last week and retested the support from 0.6600. Even though it brokebelow, it did not confirm the breakout with a close on the 240 minute chart.Right after the false break the price rallied and retested the resistance from0.6785.

A break above theresistance could trigger another rally for the New Zealand dollar, which wouldget the price to the next important resistance from 0.6860. But considering thefollowing events, the dollar might just win against all its counterparts by theend of the week. This bearish scenario for the kiwi would be confirmed by abreak and close under the current support from 0.6600.

USDCHF - All bullishsignals

When the USD lostagainst other currencies across the board, it also lost 400 pips against theSwiss franc. The drop in USDCHF got the price of the pair all the way to0.9800. On this round number level, it is also found the 61.8 Fibonacciretrace. The support held the price for the moment, but the pressure mightcontinue from bears.

Signals are turningbearish on the last part of the down move. The prize drew a Falling Wedge and apositive divergence on the 14 periods RSI. There could become very strongsignals of the price will break and close on an H4 time frame above 0.9900. Inthis scenario a rally could get the price back to parity.